Inland Rev making (more) money off Graduates???

pcyam

If you make voluntarily payments these get credited to your loan straightaway, with regards to the payments coming out of the salary I was told by student loans (feb 2006) that they backdate the payments from when it was deducted from my salary but I'm reluctant to believe this as I felt like I was just fobbed off by the girl on the phone.

But I make as many payments as I can via my credit card (even if its £10) so that I either get points or make the payment using a 0% shopping offer card and leave the money in a high interest account and pay off at the end of the 0% with the whole amount as I make more in interest compared to the amount they charge.

HTH

ab7167

This does not apply to pre 98 loans, as I fall into this category and can confirm that as soon as the money goes out of my bank account it comes off the balance. Balance can be checked as often as you like via an automated telephone system. Interest is applied daily, as the balance creeps up by pence each day and then drops on the 10th (when my payment leaves the bank account). I once phoned every day for a month to check what was going one! We only get statements once a year in September, but they clearly show payments being credited every month and interest applied every month. I requested an interim statement recently (for a loan application to prove balance outstanding) and this arrived in 2 days.

surfcat

You do not incur interest on amounts that have been paid off, even if this money is held by HMRC.

"If you are repaying by PAYE or Self Assessment, interest accrual will be suspended from the start of the tax year until the end-of-year repayment details are received from HM Revenue & Customs (HMRC). What this means is that no interest will be applied to your account until the end of the tax year."

http://www.direct.gov.uk/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/RepayingStudentLoansPost1998/RepayingStudentLoansPost1998Articles/fs/en?CONTENT_ID=10034867&chk=skiBvV