SLC don't seem to want to deduct my loan

mr_rush

I graduated in 2005 and have been earning well over the minimum threshold required for paying back student loans. I work in the public sector.

I expected my student loans to start being deducted from the next tax year after graduation. However, for some reason they never were. After shifting hospitals (where I work) I ticked the 'pay student loan' box on my P45 - still no loan deduction. New job since lsat month - again ticked pay loan box on the p45 - still no deductions.

My loan is around £20K at the moment. I'd be paying about £200/month if they did start cutting the loan from my pay. I'm in no great rush to pay it off at present - buying a flat so extra cash will be useful to start with.

What are the implications of not chasing after the SLC with my details to pay the loan? Its not like I'm purposely trying to hide from them - I'm putting on my P45 that I want to pay the loan. For some reason this isn't getting through.

Suggestions would be helpful.
Thanks

lil_lisa

Although it's technically their fault that they're not taking the money from you but if I were you i'd safe guard yourself incase they try to send you a fat bill for all the money they should have been claiming from you. If it were me i'd be putting the £200 a month into a high interest savings account so it'll cover you for any eventuallity:

a) If they ask you for the whole lot in one go it's there waiting for them (and earning you some interest in the mean time).

b) If they start to take the money and don't consider you to be in 'arrears' with them then you can keep the money as savings and you've already learnt to handle your finances minus the £200.

c) If they still don't start to claim the money then more and more will get tucked up in savings earning more interest until they finally do get thieir act together.


However, I would say to contact them and show that you've made efforts to get this resolved so they can't turn round and accuse you of trying to evade paying the loan back!

Perversia

Are your addresses up to date with both the Inland Revenue and SLC? If not, they will have problems taking the money...the same has happened to my fiance.

If I remember rightly, they cannot back charge you for repayments that they didn't take as it really isn't your fault; it is meant to be an automatic system.

I found this on the Directgov site:

If the April following your last date of attendance has already passed, your repayments will commence as soon as can be arranged, and you will only make repayments from this point.