Stopping Student Loan Payments

torchomatic · 23 December 2014 at 11:03AM

My wife started with a new employer (a local council) in 2012. When she filled in all her details of employment, etc she was asked if she had a student loan on the form, she ticked the “yes” box. Thought nothing more of it.

She has a student loan from 1998 so the repayment threashold is quite high – you have to earn £2K a month to start repaying so she always fills in the deferment form, etc.

We noticed a while back that £7 a month was being deducted from her pay at source for Student Loan. She meant to sort it out but never got around to it. This has now increased to £18 a month. She rang Council Payroll yesterday who said that when you tick that “yes” box they automatically deduct payments even if you are deferred! They told her to contact Student Loans for an SL2 form to stop payments and to reclaim all the money she has paid. She contacted Student Loans who said to contact HRMC or download a Stop Notice Form SL2.

We have spent ages trying to find a place to download the form or even to find a contact for HRMC – they tend to be contacts for Self Assessment or Income Tax. Has anyone come across this before and does anyone know where I can get this form? Failing that if anyone has a HRMC contact number then I would be grateful.

Thank you and a Happy Christmas!

Tixy · 23 December 2014 at 12:54PM

Not sure from your post which loan plan she is on.

Did she start her course in September 1998 - in which case she in on income contingent plan 1 and should pay 9% of anything over £16,910 a year (£1409 a month).

Or was it before September 1998 which means she has a mortgage style loan? If it was a mortgage style loan then contact the employers payroll department to explain that she incorrectly ticked the yes box on the P46 they gave her.
I don't think she can complete a stop notice herself. A stop notice is issued only by HMRC direct to the employer. And they will only issue one based on information from or discussions with Student Loans.