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Student Loan payments
tallgareth
Posts: 24 Forumite
in Loans
Hello
My wife took out a student loan while at university and has been paying it back since she started working 3 years ago (it's taken directly from her salary each month).
Her recent statement from SLC said she hadn't paid off any of the loan so she rang them up to inquire. She was told that there was currently a large delay between HMRC passing on details of payments to SLC. In her case the delay appears to be at least 3 years!
She has calculated that she will have paid off the loan in a couple of months time, but obviously SLC wont know about this. When she asked them how they'd know to stop the payments, they said that they wouldn't and they'd just keep taking money until they had details of the payments she'd made. This means my wife will be paying money that she doesn't owe for potentially a long time.
SLC said that if she sent copies of all her P60s & P45s from previous years and her wage slips from this year, detailing all the payments she has made and proving she has paid it off then they will update their details stop taking money.
Asking around, it seems other people have experienced the same thing, and have had a hassle trying to stop SLC taking extra payments and reclaim over payments.
My question is how are SLC allowed to do this? They are taking money that isn't theirs and presumably earning interest on it. Also, when they calculate interest on your loan they aren't taking into account payments you've made as they aren't aware of them, so surely they're charging too much interest.
My wife took out a student loan while at university and has been paying it back since she started working 3 years ago (it's taken directly from her salary each month).
Her recent statement from SLC said she hadn't paid off any of the loan so she rang them up to inquire. She was told that there was currently a large delay between HMRC passing on details of payments to SLC. In her case the delay appears to be at least 3 years!
She has calculated that she will have paid off the loan in a couple of months time, but obviously SLC wont know about this. When she asked them how they'd know to stop the payments, they said that they wouldn't and they'd just keep taking money until they had details of the payments she'd made. This means my wife will be paying money that she doesn't owe for potentially a long time.
SLC said that if she sent copies of all her P60s & P45s from previous years and her wage slips from this year, detailing all the payments she has made and proving she has paid it off then they will update their details stop taking money.
Asking around, it seems other people have experienced the same thing, and have had a hassle trying to stop SLC taking extra payments and reclaim over payments.
My question is how are SLC allowed to do this? They are taking money that isn't theirs and presumably earning interest on it. Also, when they calculate interest on your loan they aren't taking into account payments you've made as they aren't aware of them, so surely they're charging too much interest.
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