if you pay your student loan off in lump, do they stop taking out of pay immediatly

anna42hmr

just wondering, as have not got very much left on the loan and want to clear the last bit, (as i am thinking of going abroad in a few months and dont want to have it hanging over my head if i do move and have to pay from there)

I have access to the online repayment site and note they have not got last tax years payments updated yet, but I have imputted all the info from my payslips etc. on their loan calculator

if i call them and ask to settle in full, will it stop the money coming out of my pay cheque via hmrc straight away? or will it still be taken for a month or two so will have to reclaim it??

I also note on the online site if you do an additional payment via a card, there is an option to select how much you pay or to pay the remainding amount, provided that i update the payment info on their calculator online for the months they have missing, will they take what I owe them, or do they do it for the information that they have from the most recent tax statement only (ie in my case 08/09 tax year, as 09/10 tax year not reported to them yet? Or am i best to just settle over the telephone?

Mankysteve

I would wait till they know exactly how much you played last year personally.

zppp

I would suggest calling them to ask for a settlement figure including last year's repayments. Although it may not be reflected online, due to the wqay interest is charged they should have an idea.

Procrastinator333

Hello,

I'm in the same situation.

They are always a long way behind on payments - Even now, they probably don't have a record of the value of you loan payments for the year to 5th April 2010. And they won't have a record of your payments from April and May this year until probably June 2011. They only find out from HMRC payments for the whole tax year a couple of months after it has ended. So don't rely on them to get it right.

Call them first. Tell them you think you will finish paying it off this year. They will ask for details from last years P60 (which you should have by now).

They will then ask to set up a direct debit with you and at the same time they will write to your employer to tell them to stop taking the loan.

I intend to wait until the loan stops coming out of my salary, hopefully this month. I will then cancel the DD and phone them to clear off the balance.

I would advise doing it in that order, otherwise they may end up taking too much - I don't think it will be easy getting overpayments back from them. So be sure it has stopped coming out of your wages and any DD is stopped before you clear the balance.

anna42hmr

thanks for the replies, i appreciate it