Paying off student loan despite earning less then £15,000

isushi

Hello,

Second thread of the day.

When I took my student loan I remembered being told that I would only start paying back money when I am earning over £15,000 a year (I started my degree in 2003). At the moment I only earn around £13,000 a year.

Where I currently work there was the opportunity to do overtime for a two months. When I got my pay slip I found I have had £30 taken off me to pay my student loan.

The only thing I can think is that proportionally my pay slip for that month was more then £15,000 as there is no way I have managed to get £2,000 worth of overtime for the year.

I do not mind so much, but it does feel annoying that I have had 4 hours pay taken off me when I am already struggling financially.

Also if you have read my other post I am considering taking a 6 month contract job that pays £20,000. So if I take the job and do not find work for the rest of the year... i.e. I have only earned £10,000 that year... Will I still have to pay money for my student loan instead of being able to save up money for potential joblessness?

I know the above is the only feasible way to make payments for student loans... it just seems unfair that I am having to pay it when I am on a low wage and have some temporary overtime available while no where near making £15,000 a year.

The_Unready

Hi,

The Student Loan Repayment guide clearly states that the loan becomes repayable when you are earning more than the threshold, "...which is £1,250 per month or £15,000 per year."

The Unready

chrisbur

Also from the Student Loan Repayment Guide, at the top of page 8, it advises that in circumstances like yours where the deduction was caused by a short term increase in earnings that do not take you over the annual threshold you can apply for a refund of these deductions at the tax year end.

isushi

Thanks Chrisbur!

That makes a great deal more sense. I think I will look into it.