Student Loans arnt taking the money they are supposed to!

JimLad

Hey Guys,

I am in a bit of a dilema with my student loan.

Apparently they are supposed to start taking money from your salary in the april after you graduate, that was 1.5 years ago and im earning well over the threshhold.

I have questioned HR in the company i work for and they say they are wait for something to come from the SLC to tell them about it. The question is, should i tell them about their mistake? Whos responsibility is it?

Every year i get my statement with a little bit more interest added so its not as if i have strangely dissapeared off their system!

Obviously my savings are gaining more interest than the loan is costing me so im financially better off this way. The only issuer i have is are they suddenly going to demand 4 years payments or something mad!

Please help!

Fiddlestick

JimLad wrote: »

I have questioned HR in the company i work for and they say they are wait for something to come from the SLC to tell them about it.

That is incorrect.

Firstly it is your obligation to ensure that the deductions happen. You appear to have informed the company and that's good, but you still need to keep chasing them.

Secondly, they don't need to wait for anything from SLC. You employer will make the deductions at source along with your income tax and NI contributions.

After that I'm not overly familiar with how the money gets to SLC but I *believe* that your employer will mark it on the paperwork that they send to HMRC along with their tax payments and HMRC will then pay the money over to SLC at the end of the tax year.

This is why the statement that you get from SLC each year is always a year behind.

The question is, should i tell them about their mistake?

Yes, as they are well within their rights to backdate the payments and demand a lump sum from you.

Whos responsibility is it?

Ultimately it's yours.

The only issuer i have is are they suddenly going to demand 4 years payments or something mad!

Legally they can do this, yes.

This is why you need to make sure your employer starts the deductions and then negotiate with HMRC/SLC to start paying off the arrears.

JimLad

well that settles it then. I will chase my employer and then phone the SLC.

At least then they cant claim i didnt try

CLAPTON

JimLad wrote: »

well that settles it then. I will chase my employer and then phone the SLC.

At least then they cant claim i didnt try

well, you need to chase the SLC

it is indeed so that your employer can't make any deductions without instructions from the HMRC

(and the HMRC are instructed by the SLC)