Student Loan - nearly paid off...

gadgetboy00

Hi all,

I am nearing the end of my student loan and want to be sure I will not have over payments.

They are on average taking £350 per month and my balance is only £1139 remaining. I have asked them to issue a stop notice to HMRC and employer.

They said to let Aug, Sep and Oct payments come out and then call them to see where its at.

Questions

1. Does student deductions come from net pay?
2. When cleared off can I expect my net pay to increase by what I am currently paying off?

Look forward to you advice.

La_escocesa

Hello - think it's gross pay - 9% of what you earn over £15k.

If you try something like http://www.thesalarycalculator.co.uk/salary.php you can put your salary details in with and without the student loan to see the difference it will make.

Lucky you to have it nearly cleared!

ellesbellesxxx

When you have paid off your loan, you need to send them copies of your payslips to prove you have made the final payments. This took a while to sort for me so they took another 1/2 payments. However, once I had proved via payslips that I had paid off student loan, then they refunded me the overpayment and stopped taking the money from my wages.
so...
1) I don't think you are taxed on it no so isn't that gross pay?Can't remember!
2) In and around, yes!

gadgetboy00

ellesbellesxxx wrote: »

When you have paid off your loan, you need to send them copies of your payslips to prove you have made the final payments. This took a while to sort for me so they took another 1/2 payments. However, once I had proved via payslips that I had paid off student loan, then they refunded me the overpayment and stopped taking the money from my wages.
so...
1) I don't think you are taxed on it no so isn't that gross pay?Can't remember!
2) In and around, yes!

I am hoping to avoid overpayments. However good to know thats what I will need to do to sort things out if payments over-run.

I have used a salary calculator online and it seems that my net pay will increase by the amount I am currently paying off. Bonus!

chevalier

Nice one on paying off the loan. If you are not struggling to live at the moment, it might be a plan to set up a savings plan to start in say November for say 175 a month, so you get some savings behind you, but still have an increase in lifestyle with the other half....
chev

NinjaSavingKat

Gadgetboy I got rid of my student loan in May of this year and as Ellesbells says there will be an overpayment.

It goes something like this - bearing in mind it seems the office I rang had a brain half functioning that they shared between them! Muppets is the kindest word I will write.

If you were to let your payments run and not take any notice of the end date, it's the HMRC who then contact the Student Loan Company who then contact your employer with a stop notice. This can take up to 3-4 months following your last actual payment that is required.

The refunds take 28 days to process with another 28 to come to you!

Like you I was not impressed with this and was unwilling to have them take money from my account for that long - and thus started the journey of great disappointment. However it didn't take as long as what it could have been.

The most important things I used were calculation from my online statment of payments. The SLC need your P60 to confirm what you have paid prior to 5th April 2013 and then every payslip from there - so I would wait until you have the payslip from the end of this month.

Then call them, ask for a fax number and you can send them these details.

But unless they have the last payment you owe in sight - they won't issue a stop notice unless you give them CC details and pay the remainder over the phone. Does that make sense?

My last payment was £47, on average they were taking anywhere between £150 - £290 a month depending on my salary each month. You have 3 months to go at least with a possible remainder of £89 if your above suggestions are correct.

Thats Sept / Oct and November that has to come out. Call them the day before you get your November payslip - take names and numbers, and fax number. Fax all of your payslips from March onwards (becasue they are a bit special and you don't want them to panic if they can't see everything they need to) and fax them all. Then call them again and MAKE SURE THEY GOT THEM THAT DAY. This means they will get the stop notice sent through to be effective after the following payment in December - the £89 - and nothing will come out in Jan and you will be sent a refund UNLESS you can pay the last remaineder by other means and end the saga there.

The people I rang gave me completely different information, I got a little annoyed having spoke to complete dimwits who told me something different for numerous phone calls, who were confused by my simple explanation that I didn't want overpayments coming out. Having finally got someone who said "fax it all to me now, I will issue a refund in 24 hours". I faxed them, got confirmation, waited a week to be sure, called back, that person had gone sick the day I faxed. Now speaking to a new person who said it would take 5-7 working days if I faxed my payslips again... and then waited another 5-7 working days and eventually got £70 back.... having paid one month of overpayment and only owing them half of it.

Sorry this is long winded but I wanted to explain what you are up against......:rotfl:... No harm in calling them for further advise but I do not believe they will issue a stop notice this early for you!..

Good Luck!

Malkin157

Is there any virtue in getting a credit card with 0% on purchases and then calling SLC, paying off your remaining balance, stopping payments to them and then dealing with the credit card balance over the remaining months you would have been paying the SLC?

ellesbellesxxx

Malkin157 wrote: »

Is there any virtue in getting a credit card with 0% on purchases and then calling SLC, paying off your remaining balance, stopping payments to them and then dealing with the credit card balance over the remaining months you would have been paying the SLC?

I think that student loan comes out before tax so you pay more tax by doing it via Credit Card.

Overpaying is a pain I quite agree but unfortunately seems to be what you have to do.

weebit

ellesbellesxxx wrote: »

I think that student loan comes out before tax so you pay more tax by doing it via Credit Card.

Actually, not true. You always pay the same amount of income tax regardless of if you're paying student loan or not.

dreamdreamer

Have you been given the option of switching to monthly direct debit to pay the loan, rather than paying through the tax system? The SLC company should offer this when you enter your last 2 years of payments.

More info here: http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678768&_dad=portal&_schema=PORTAL

If you haven't been offered this I'd give them a call and take them up on it for the last few months to avoid the overpayments. It's what I plan to do next year.