Student Loan Overpayment

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  • bethm
    bethm Posts: 8 Forumite
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    Apologies if someone has already asked this but...My youngest son who is 21 graduated this summer (2017) from a 3 year course and began working in August. He is very fortunate to be on a good starting salary (£32,000) and is already paying off his loan, not realising about the April start date. As he is earning well and therefore paying off a high proportion of his loan, I am wondering if he is likely to have paid it off before he is 50. In that case is he better off paying back straight away because of the interest rates?
  • silvercar
    silvercar Posts: 46,945 Ambassador
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    As he is earning well and therefore paying off a high proportion of his loan, I am wondering if he is likely to have paid it off before he is 50. In that case is he better off paying back straight away because of the interest rates?

    Crystal ball time.

    If his salary continues to increase and remain above the average graduate salaries for his age then this is possible.

    Future interest rates are another unknown.

    Worth reading the article on the main MSE site:

    https://www.moneysavingexpert.com/students/repay-post-2012-student-loan
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Forgetful
    Forgetful Posts: 1,729 Forumite
    yes I understand about recaliming if u have paid back too early.
    but the amount u have paid will be deducted from the amount u owe.
    but then if u reclaim the amount u have paid early does this get added back onto the amount u owe or does it stay off.

    Ie: i owe £30,000... i paid early £400... i reclaim this early payment... but then wat do I owe still?? £30,000 or £29,600??
    thanks
  • Ed-1
    Ed-1 Posts: 3,889 Forumite
    First Anniversary Name Dropper First Post
    Forgetful wrote: »
    yes I understand about recaliming if u have paid back too early.
    but the amount u have paid will be deducted from the amount u owe.
    but then if u reclaim the amount u have paid early does this get added back onto the amount u owe or does it stay off.

    Ie: i owe £30,000... i paid early £400... i reclaim this early payment... but then wat do I owe still?? £30,000 or £29,600??
    thanks

    You owe £30k. But remember that can become a grant in time when it is written off.
  • yeslek
    yeslek Posts: 1,442 Forumite
    First Post First Anniversary Combo Breaker
    Do we have to call? To check?

    I worked full time whilst at uni and was on wage so some months i’d Pay even though technically my yearly wage was under the threshold for repayments (I was on min-wage or just above for years)
  • Upon completing my undergraduate degree I then did a 1 year postgraduate certificate in Education, both of which I received student loans for.
    Which April would I have been due to start repayments (providing I was earning above the threshold)- the April following completion of the undergraduate degree or the April following completion of the pgce?
  • Ed-1
    Ed-1 Posts: 3,889 Forumite
    First Anniversary Name Dropper First Post
    Upon completing my undergraduate degree I then did a 1 year postgraduate certificate in Education, both of which I received student loans for.
    Which April would I have been due to start repayments (providing I was earning above the threshold)- the April following completion of the undergraduate degree or the April following completion of the pgce?

    Loans for different courses have different repayment start dates and write off dates. The loans for the first course enter repayment the April after you left that course and the PGCE loans enter repayment the year after you left that course.
  • yeslek
    yeslek Posts: 1,442 Forumite
    First Post First Anniversary Combo Breaker
    yeslek wrote: »
    Do we have to call? To check?

    I worked full time whilst at uni and was on wage so some months i’d Pay even though technically my yearly wage was under the threshold for repayments (I was on min-wage or just above for years)

    Anyone? Help
  • I have managed to reclaim £50 from two old tax years were I was under the threshold so should have paid zero. I also have another two years showing overpayment of £90 based on my p60 however they are saying I am not entitled to a refund as its done on monthly salary. Part if overpayment is caused by getting 2 salaries in 1 month when I started a new job. Any advice can i push it further
  • Is anyone having problems recieving their money back from the SLC?

    My OH is due £330 back, confirmed with the SLC earlier in December. She was passed to the payments department and gave her account details etc and was told to expect the payment in 3 to 5 working days.

    The monies never arrived, she contacted the SLC again and was told the payment got 'lost' they would process it again and to expect the payment in 3 to 5 working days.

    On the fifth day no money again and the office was closed for xmas. She has now contacted them today to be told she needs a letter from her university confirming her graduation date as its wrong on their system (July 15) she graduated July 16 and was receiving loans and grants in the 15/16 academic year as confirmed by the SLC systems!!

    Are they just taking the michael? Does anyone know what our rights are with this? We are thinking of writing a letter of complaint. :mad::mad:
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