Student loans and temp income

LotsaLuck

Hi there,

I can't find the answer to this question and wondered if anyone can help please?

I work for a temp agency, earning a fairly varied salary month to month. For 3 out of the past 6 months, I have earned slightly over the threshold earnings for repayment of my 1997 student loan (£2400 ish). The other 3 months, I earned significantly under the threshhold. When my current deferment ends in June, how will my earnings be calculated? Are they taken as an average? Or will the fact that I have (and may well in the next 6 months) earned over the threshhold for some of the time mean I'm no longer able to defer? (even if, on average, I'm under the threshhold).

Thanks :beer:

LotsaLuck

Guess no-one knows the answer to this question then.. Anyone? ��

Jackieboy

You'd probably do better posting this on the Student Board.

redpete

The first hit when googling "income varies student loan threshold" takes me to a page from Student Loan Company that makes it clear that the threshold applies to each pay period, i.e. each time you are paid, not to an average over a longer period. It might be different if you count as self employed.

Katzen

I believe they take it based on each month'a pay regardless of overall earnings and there's nothing you can do about it. So, on you high pay months you will pay them and not on your low pay months. I don't think there's a way to then claim that back but I may be wrong. Call them

CLAPTON

I thought that pre 1998 loans were paid by monthly DD and not based on your monthly income

maybe you could clarify what sort of loan you have

Herzlos

It's on a per-paycheck basis pro-rata'd. So the months you go over the threshold you'll pay back at 9% (I think) of the pay above the threshold, and the months you go under it you won't pay any back.

Same applies if you're paid weekly, but obviously the threshold is lower.

Tax works in the same way.

Shakin_Steve

Herzlos wrote: »

It's on a per-paycheck basis pro-rata'd. So the months you go over the threshold you'll pay back at 9% (I think) of the pay above the threshold, and the months you go under it you won't pay any back.

Same applies if you're paid weekly, but obviously the threshold is lower.

Tax works in the same way.

Except with tax, if you don't reach the threshold at the end of the financial year, you can claim back what you paid. Not with student loans, I guess.
Don't get me wrong, I'm not saying student loans shouldn't be paid back, they should.

Kim_13

Shakin_Steve wrote: »

Except with tax, if you don't reach the threshold at the end of the financial year, you can claim back what you paid. Not with student loans, I guess.
Don't get me wrong, I'm not saying student loans shouldn't be paid back, they should.

You can claim back at financial year end if under the annual repayment threshold on income contingent Plan 1 or Plan 2 loans, but unsure if this is possible with a mortgage style loan. The website doesn't give much information as it does for the other loan types, it just directs you to the debt owners.