A little student loan advice required....!

martin2345uk

Hi, this is my first post here so be nice :-)

Okay, I have recently got a job above the minimum repayment threshold for paying back my £16,000+ student loan, but they have not started automatically deducting it as they should...

and also I have moved address about 4 times since they last sent me my statement, and I haven't updated them :-S

Do you think I should contact them to ask them to start deducting it from my salary? I'm scared they will charge me one big lump sum of like a thousand pounds or something

I'm rubbish with finances, anyone offer any advice?

Thank you

Martin

CLAPTON

Assuming the student loan is fairly recent (?(i.e. a new style loan ) then you need to tell your employer that you have a student loan and they should start deducting it.

And yes you ought to update SLC about your current address.

martin2345uk

Thanks for that, my loan was for a course from 2000 to 2004, I just havent been earning much til now! They won't backdate payments will they..? :eek:

Oldernotwiser

Have you been sending them the deferment forms every year up til now? If not you could find yourself in difficulties over arrears and fees.

CLAPTON

your loan is a 'new style loan' i.e. one that is paid via the tax system so you pay 9% on earning above 15,000 pa... so speak to your employer...they should deduct the correct amount.
unless your earning were more that than 15,000 per year then you dont owe them anything.

hibees1875_2

To ease your anxieties a little, think about how much over the limit your earnings are now and how long has that been the case:

earnings over threshold x 9% x number of months earnt above threshold rate. From what you have said, it hasn't been long that you have been earning over the threshold so you don't have much to worry about. Typically, earning 1000 - 1500/per month will equate to between 20-40pounds in student loan deductions (very rough example).

Also, as has been said, make sure you update the SLC re contact details, mainly to ease your own anxieties in the future and prevent the feelings your having now from re-emerging. Anxiety is the biggest obstacle to dealing with financial issues. overcome your anxiety by simply sitting down and working through sorting the problem to take away any anxiety.