I want to be (student loan) DF!

KittyKate

Badgergal wrote:

That said, I recently got another job and the SLC payments appear to have stopped coming out of my payslip, unless they are included with the rest of the taxes (which they never were before with my othe jobs, they were marked as 'student loan'). The SLC hardly ever send me a statement either, which is annoying. Suppose I should check this out when I go back to work in the new year!

Thanks. Yeah, they appear as 'student loan' on my wageslip as well, but I was never prewarned or sent a final amount by the SLC which is irritating. Honestly...these companies..quick to take, not as quick at giving!

ktb

Badgergal wrote:

That said, I recently got another job and the SLC payments appear to have stopped coming out of my payslip, unless they are included with the rest of the taxes (which they never were before with my othe jobs, they were marked as 'student loan'). The SLC hardly ever send me a statement either, which is annoying. Suppose I should check this out when I go back to work in the new year!

The exact same thing happened to me when I changed jobs a couple of years ago Badgergal. It turned out that even tho I had ticked the Student Loan deduction box on my P45 my new employer hadnt noticed. Does anyone know what the implications are if you should be paying it back but arent tho?! My OH's employer didnt notice when he started either so he hasnt made any repayments in the last 6 months...

Badgergal

It is SO annoying how they don't bother with sending you much documentation...I only have a vague idea of what I owe by now to be honest - and the statements they do send are usually out of date.

I wouldn't be surprised if my new company hadn't noticed - they are only a small association, whereas the other jobs were large corporations with HR depts that were used to dealing with student loan contributions.

I gave them my P45 complete with all the student loan bit...but I'll check with the HR lady when i go back to be sure. No idea what the implications are but I guess they'd catch up with us eventually...

CLAPTON

it up to your employer to deduct the student loan payment so best speak to them.

you should get a statement once a year (from the SLC) in about July which tells you the situation as at the previous april and the details for the previous tax year.
so in July 2006 you should be told what you paid between April 2005 and march 2006 and the interest charged etc. and the closing balance at April 2006.
this year they were rather late sending them out so if you haven't received one you should contact the SLC.

hbl_2

Don't confuse "don't pay it" with "don't overpay it!" - no one here doubts your sincerity that you're honest enough to pay it back.

I have £16,500 in student debt and while I intend to pay it back, I have no intention to make any more payments than what comes out of my paycheck.

If you save the money you would otherwise pay back you could raise the £14,000 in under five years (£200 a month in a high interest regular savings account, and periodically dumping it into an ISA). Then you have £14,000 in savings at 5.5% (earning £750 or so a year), and £14,000 in student debts at say, 3% costing you £400 a year. You are ostensibly £350 better off.

BUT! Here's the great thing - because you now have £14,000 in savings, should anything come up that requires a loan - deposit on a house for instance, you've still got one - at 3% no less - which is a damn sight better than if you'd paid off your student loan in full ahead of time and now had to take a loan of £14,000 at 7% (costing you £1000 a year or worse).

So just to reiterate DONT PAY IT BACK ANY SOONER THAN IT COMES OUT OF YOUR SALARY - SAVE AGAINST IT INSTEAD. You'll be a lot better off.

It's what I'm doing.

hbl_2

Oh and I should add...

Well done for taking an interest in your finances. It's the first and easiest step to being wealthier. A lot wealthier.

Good luck!