is this true?

studentkathryn

I got this in an email a few days ago. Anyone know if it's true? Or if we can do anything about it?

"For most unsuspecting graduates who are paying back their student loans,the Inland Revenue takes payments directly from your employer in the same way as they take tax. I.e. the more you earn the more you pay, this includes bonuses etc. However after taking monthly amounts the inland revenue does not pay this directly to the student loan company, instead they wait until the end of the financial year in April and then pay the entire year off to student loans. The effect of this is that the inland revenue hold on to your monthly payments for up to a year earning themselves interest. During the same period, because student loans have not received these funds, they in turn charge the graduate interest on the outstanding amount even though it has been paid to the inland revenue.

Bottom line is that for those in this position we pay interest to student loans on money which has been taken from our accounts which the inland revenue keeps and earns interest on."

TeaBoy_2

no http://forums.moneysavingexpert.com/showthread.html?t=412946

Dave2012_2

No it's not true.

Just to try and bring all this together, here are the other threads on the same thing:

http://forums.moneysavingexpert.com/showthread.html?t=414417
http://forums.moneysavingexpert.com/showthread.html?t=407900
http://forums.moneysavingexpert.com/showthread.html?t=413324

This petition has at least revealed the hair-raising number of people who don't understand how their loan repayments work _pale_