Student Loan Repayment Question

glider3560

I have a quick question about repayment of student loans.

If I were to be paid on the 25th of every month and repay, for example, £100 of loan every month. I understand this won't show on the loan balance until the end of the tax year (or afterwards) but:

1. Are the payments dated on the statement as the date they were actually made (i.e. 25th of every month) or the date they are credited to the loan?

2. Interest accrues monthly, so is the interest recalculated when the repayments are credited?

Thank you

MrsManda

HMRC update us with details of repayments through the tax system after the end of the tax year. We add these repayments to your loan
account as if they were made at the point your employer took them from your salary.

A guide to Student Loans T&Cs

So at the end of the financial year when the HMRC informs the SLC of how much you've paid and when, the SLC put those payments into your account as if you've paid it each month and the interest is worked out accordingly.

(I hope that makes sense I'm having difficulty constructing sentences)

Poolie

It will appear on your statement as one lump payment from HMRC although as Mrs Manda said the total payments are divided by 12 (any remainders are added to first payment) and interest is recalculated based on the payment being received equally. So if you get a big bonus 1 month then this is spread over the whole year.

gnimia

sorry - shouldnt have hijacked!