Do employers gain from your student loan repayments??

bagz_2

Probably been asked before......

Never really paid much attention to my student loan repayments, other than the annual statements.

Last statement was around £240 (march 2014), so i figured i would have it paid of by now, and indeed i have, but my payments have continued to come out, as its my responsibility to say "i've finshed". So the last 8 months ive been contributing to a debt that doesn't exist.... Something i find really bizarre!

Another thing i learned is that the monthly payment dont go straight to the student loan company. Your employer holds onto it until the end of the financial year.

So my question is..... Are our employers earning interest on our money??

Lokolo

Your company pays HMRC, the taxman, your student loan contributions. These are reported to Student Loans at the end of the tax year by HMRC.

When your company actually pays its employee tax I don't know.

SeduLOUs

Payments are made to HMRC monthly along with your tax and NI and then sent to Student Loans in a batch after the end of the payroll year (usually July), so it's HMRC who are earning off it, not your employer.

If you speak to Student Loans Company there is usually a way out of it - they can't stop deductions until next payroll year, but I've known people in the past get their deductions refunded by cheque on a monthly basis until the payroll collection is stopped.