Student Loan repayment nonsense

Jubilee_Phil

My daughter is reaching the end of her repayments of her student loan. She works for the NHS who deduct her repayments at source and has been told by SLC that her employer collects her payments monthly but does not pay the SLC until the end of the financial year which will result in overpayments and extra interest whilst her employer banks her money. This seems to me to be a scam as in these days of electronic transfer of money that her payments should be made monthly. It may be the case that over the last decade she has been paying interest on money that she has replayed but her employer has kept!!!!

amiehall

It's HMRC that keeps it and I'm sure the interest is calculated correctly. This is a common problem though and if you're within 2 years of paying off your loan, you can switch onto a DD to avoid overpayments.

Lokolo

The scam of "it can be done by electronic transfer" is completely true, and as amuehall has stated, you can do that by asking to set up a DD!

Poolie

SLC usually write to the repayer if they feel you will repay within the next 2 years offering you the chance to move onto a DD payment scheme to avoid overpayment.