Student Loan - Pay in full to avoid 24 month rule

femster82

Hi,

Hopefully someone can advise on this as it's doing my head in :eek:

I have a student loan with a balance I calculated at £3305 and I am paying around £215 per month through my salary. It was a loan taken in 2000 to 2004.

I work away from home a lot and I am about to hit the "24 month Rule" which mean my expenses will be shown in my wage slip even though they just cover the actual wrk expenses I have to pay. This causes a issue with student loan as they take out the % of salary no matter what.

I was thinking of paying off my loan before I hit this issue in November but I have a concern about then continuing to take out money from my salary as I have heard so many stories of this happening?

Also I read on this forum I could set up a direct debit to stop them from taking too much from my salary is this an option or just when you are near completion?

Thanks

Lokolo

As you are currently paying £215 and you have £3305 you should really already have phoned them and asked to switch to direct debit repayment.

I would do this now. It will take around 1-2 months to update PAYE to stop taking payments, then in month 3 or 4 your direct debits will start.

When you get close to £1,000 left, if you have the money I would then phone them up and ask them for a settlement figure to finish the loan off (this is what I did).

femster82

Lokolo wrote: »

As you are currently paying £215 and you have £3305 you should really already have phoned them and asked to switch to direct debit repayment.

I would do this now. It will take around 1-2 months to update PAYE to stop taking payments, then in month 3 or 4 your direct debits will start.

When you get close to £1,000 left, if you have the money I would then phone them up and ask them for a settlement figure to finish the loan off (this is what I did).

Thanks, just did this and they set up a DD to start in December which is perfect. Like you said when I get to £1k I will probably pay it off as I'm trying to apply for a mortgage and any little helps.

Glad I came on here for help.