Student Loans Questions

PJH_2

hey, sorry if this is in the wrong place

I graduated in 2000 and have been paying off my student loan for about 3/4 years through a direct debit. I was talking to a friend and they said that because i was repaying through a DD I was being taxed on my monthly earnings, then paying the student loans company 'after tax'. However if it was coming straight out of my monthly paycheque i would not be paying any tax on my repayments because they come out 'before tax'.

Is this true? If it is can i reclaim this tax?

Secondly, if i am paying unnecessary tax should i change my SL repayments so that they come straight out of my salary? My repayments have stayed the same for 2/3 years but my salary has gone up - if i change will they start hitting me for more money each month and will it actually be worthwhile?

My repayments are about £95 per month and my salary is £30k, the SL website say that they take 9% of your salary after 15k, this means i'm roughly £200 lower than i should be. I think.

Thanks for any help

Imelda

I pay my Student loan off through my pay and it is done before tax. The repayments are certainly not tax free. I don't know where your friend got that from.

If the SLC were to take payments from your monthly wage you would be paying £112.50 each month.

chriswuk_2

When I moved jobs about 5 months ago, the SLC stopped taking money from me.............think it's time I gave them a call ??

Imelda

chriswuk,

If you're keen to pay it back then yes, and speak to your payroll dept as well as they will be the ones that will need to action it.

The SLC do nothing off their own backs, totally incompetent.