When do student loan repayments show up?

guitarman001

Hi,

Does anybody know how long it takes for student loan repayments to show up??

Say I pay £200 per month - is that physically taken off my balance, or is it only done at the end of the year? You can see what I'm getting at...... if the interest is done on a daily basis but repayments aren't factored in until the end, we're effectively losing out!

Thanks

kayla85

Imm not an expert but i thought you start to pay you loan when your earning 15,000 or more. When you signed up to get you student loan you would have selected how you wish to pay them back. IF you selected direct debit the money will be taken off monthly once you earn 15,000 or more. ITs not an awfull lot though a low percentage. I think they know when your earing enough to be able to pay it off. As it automatcally cam off my account once.

Hope this helps a bit prob best contacting student loans company directy im sure you know thi salready

CLAPTON

your employer deducts the repayments from your salary on a monthly basis and send them the money.

your employer tells the HMRC about your payments after year end; so details of your payments from April 2009 to March 2010 are only received by the HMRC in april/may 2010 who then tell the SLC

However, the SLC have some graduates working for them who have worked out a cunning plan to apply the payments spread out over the year so the result takes into account the monthly nature of the payments

a pretty daft system mind you but many government systems are rather old fashioned.

onejontwo

I thought the loans were interest free! Or has something changed recently . If so would anybody know the interest rate and is it competitive? (I am only asking this as my daughter has recently applied for a student loan).

CLAPTON

onejontwo wrote: »

I thought the loans were interest free! Or has something changed recently . If so would anybody know the interest rate and is it competitive? (I am only asking this as my daughter has recently applied for a student loan).

In 'normal' times the rate of interest charged is that of the RPI (retail price index) based on the march figure and applied from the following september to august

as the March 2009 figure for RPI was negative the current interest rate (i.e from september 2009 to march 2010 ) is indeed zero.

There is also a rule that says the interest rate can't behigher than 1% (I think) above the interbank base rate which also holds it down.


and yes whatever it is or will be, it is/will be very very competitive

DJ1UK

Does anyone know how long it takes the SLC to apply the amount that HMRC sent them?

As its June already and my online account has only got payments taken up until April 2009 (end of tax year) - just wondering when the 2009-2010 payments will be applied.

Thanks, DJ.

anniecave

I believe they may only update the payments at the end of the tax year but the payments are back dated for interest purposes to the date the payments were deducted from your pay.

I read that somewhere else on this website.

I used to do the payments to HMRC for our company for tax and NI and each month I just made one payment for tax (including student loan deductions) and one payment for NI. Information about individual employees' earnings, tax and NI would be sent separately to a tax office or wherever it goes.

JasX

onejontwo wrote: »

I thought the loans were interest free! Or has something changed recently . If so would anybody know the interest rate and is it competitive? (I am only asking this as my daughter has recently applied for a student loan).

Do they add interest while you're a student or only after graduation.... can;t quite remember

Lokolo

JasX wrote: »

Do they add interest while you're a student or only after graduation.... can;t quite remember

They do add interest whilst you are studying yes.

redpete

onejontwo wrote: »

I thought the loans were interest free! Or has something changed recently . If so would anybody know the interest rate and is it competitive?

Usually a lower rate than you can get in an instant access savings account and the repayment terms are generous; compared to commercial loans they are very competitive. I'm encouraging our kids to get as much as they can and put what they don't need into a savings account.

AnxiousMum

I 'think' that the rate of interest is set with the rate of inflation - so in effect, it s 'interest free', as you are paying back the same amount but in current worth - if that makes sense.....sorry - Friday brain scramble!

My boys both have trust funds for university, one has used some of it but the other is fully intent on utilising as much student loan/maintenance loan money as possible, as his trust fund is earning more in interest than his student loan will cost him. Also for post grad studies, there is no funding available. So if a student is looking at something like medicine, they have to fund the tuition part of Year 4 themselves (but can be spread out over 3 years), and only get the maintenance loan. It's about the cheapest loan they will ever get, so maximise while they can!