Student Loan Overpayment

1356789

Replies

  • silvercarsilvercar Forumite, Board Guide
    42.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    I began my course in 2011 when the repayment threshold was £17,775 but left University in 2014 when the treshold was then £21,000.

    You have a pre-2012 loan.
    Usually found at a vaccine centre 💉
    I'm a Board Guide on the Debate House Prices & the Economy, House Buying, Renting & Selling, Mortgages and Endowments, In My Home incl DIY, Overseas Holidays & Student boards.
    I volunteer to help get your forum questions answered and keep the forum running smoothly.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to [email protected]. Any views are mine and not the official line of moneysavingexpert.com.
  • Hello
    I went to uni in 2009-2010 I know my repayment threshold is 15000 so since I left I have been paying it back. The last 3 years I got a job as cabin crew and I earn a set salary with no commission. however I do get an additional hourly payment which is for food and drink while I!!!8217;m away as I have to buy all my own meals. This on my wage slip get added onto my overall earning and I!!!8217;m finding the student loan company are adjusting my payments each month adding it onto my basic salary and I!!!8217;m paying more. Am I overpaying?
    Thank you
    Heather
  • glider3560glider3560 Forumite
    4.1K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    Heather_18 wrote: »
    Hello
    I went to uni in 2009-2010 I know my repayment threshold is 15000 so since I left I have been paying it back. The last 3 years I got a job as cabin crew and I earn a set salary with no commission. however I do get an additional hourly payment which is for food and drink while I!!!8217;m away as I have to buy all my own meals. This on my wage slip get added onto my overall earning and I!!!8217;m finding the student loan company are adjusting my payments each month adding it onto my basic salary and I!!!8217;m paying more. Am I overpaying?
    Thank you
    Heather

    You will only know at the end of the tax year when you know exactly how much your have earned. If you total earnings are under £17,775, you can get a full refund. If your earnings are above £17,775, the monthly deductions are assumed to be correct (unless you do self assessment, then they can only be adjusted upwards).
  • I get paid weekly so I always get over deducted.

    On 2015 I earned £18,677 and got £391 deducted. The threshold for the year was £17,335. I wrote to SLC about being over deducted and to see if I could get a refund for what was over deducted. Their reply was they dont give part refunds, only full refunds if it was under the threshold.

    Disappointing to hear.
  • glider3560glider3560 Forumite
    4.1K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    Amyzz wrote: »
    I get paid weekly so I always get over deducted.

    On 2015 I earned £18,677 and got £391 deducted. The threshold for the year was £17,335. I wrote to SLC about being over deducted and to see if I could get a refund for what was over deducted. Their reply was they dont give part refunds, only full refunds if it was under the threshold.

    Disappointing to hear.
    As per my post above, the law has been written in such a way that monthly/weekly deductions are always assumed to be corrected for those on PAYE (even if they are not across the whole year, unless under the threshold). Even those who do self assessment never get a refund of overpayment, just a bill for extra repayments if required.
  • Hi, my husband has paid off his student loan but unbeknown to us it was paid off a year ago. He is due a refund of over £2500 shortly but does he need to pay tax on the refund? Thank you.
  • glider3560glider3560 Forumite
    4.1K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    beachlou wrote: »
    Hi, my husband has paid off his student loan but unbeknown to us it was paid off a year ago. He is due a refund of over £2500 shortly but does he need to pay tax on the refund? Thank you.
    No. Student loan repayments are deducted from salary after tax, so there is no tax due on the refund.
  • edited 12 March 2018 at 9:31PM
    icic Forumite
    3.2K Posts
    Part of the Furniture 1,000 Posts Name Dropper Mortgage-free Glee!
    ✭✭✭✭
    edited 12 March 2018 at 9:31PM
    I'd missed this whole "reclaim" thread and guides, and coincidentally received a letter from the SLC last month advising me that I was due a refund. I rang and it turned out I was due £372 back - when I enquired as to how it had taken this long for them to contact me (my last loan payment was in 2007) they had no answers or whether it included interest.

    I made a formal complaint and after a month they confirmed that it had taken them five years to realise the fact they owed me a refund, so started sending me letters annually but to an old address. Eventually they received a letter back as not known at the address, at which point they traced me where I live now. Granted I moved to my current address before I finished paying the loan - so that was probably my fault as I should have kept them updated.

    However they upheld my complaint as they agreed that taking five years to figure out they owed me a refund was too long, and offered me a £50 apology on top of the refund I've already received. :T
  • alq3alq3 Forumite
    2 Posts
    Hi Everyone,

    My partner graduated in June/July 17 which means he shouldn't be paying his student loans back until April 2018.

    However he started repaying in July 2016.

    He switched from Full time learning to part time learning mid way through (same uni, same course, just a simple change from FT to PT)

    I have rang the repayments line and been passed from pillar to post and established a couple of things;
    - Student finance England put him down as 'WITHDRAWN' when he switched from Full time. Therefore having two graduation dates and two repayment dates.
    - After many phone calls with SLC & SFE they finally referred his case to a 'Tier 2 assessor' at SFE to get this incorrect 'withdrawal' changed. This happened no problem and he received a confirmation email from the 'Teir 2 assessor' confirming the changes has been made
    - It was then sat with the 'SLC repayments admin team' to update the correct graduation date in order for the refund to be made.
    - I have then spoken to someone today at SLC who has advised even though he didn't withdraw from the course and he simply switched from full time to part time he must start repaying the full time loan back as normal.

    is this correct?

    I understand the FT & PT funding pots are separate but surely he should not have been made to pay his full time loans back before he graduated from the course?

    Has anyone been in the situation or can offer advise?

    Thanks!
  • Ed-1Ed-1 Forumite
    3.5K Posts
    Eighth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    alq3 wrote: »
    Hi Everyone,

    My partner graduated in June/July 17 which means he shouldn't be paying his student loans back until April 2018.

    However he started repaying in July 2016.

    He switched from Full time learning to part time learning mid way through (same uni, same course, just a simple change from FT to PT)

    I have rang the repayments line and been passed from pillar to post and established a couple of things;
    - Student finance England put him down as 'WITHDRAWN' when he switched from Full time. Therefore having two graduation dates and two repayment dates.
    - After many phone calls with SLC & SFE they finally referred his case to a 'Tier 2 assessor' at SFE to get this incorrect 'withdrawal' changed. This happened no problem and he received a confirmation email from the 'Teir 2 assessor' confirming the changes has been made
    - It was then sat with the 'SLC repayments admin team' to update the correct graduation date in order for the refund to be made.
    - I have then spoken to someone today at SLC who has advised even though he didn't withdraw from the course and he simply switched from full time to part time he must start repaying the full time loan back as normal.

    is this correct?

    I understand the FT & PT funding pots are separate but surely he should not have been made to pay his full time loans back before he graduated from the course?

    Has anyone been in the situation or can offer advise?

    Thanks!

    See the terms of the loan:

    (2A) Subject to paragraph (2C), where a borrower takes out a post-2012 student loan in relation to a part-time course, the borrower is not required to repay any part of that post-2012 student loan until the earlier of—
    (a) the start of the following tax year commencing on 6 April after the borrower ceases to be eligible for financial support under Regulations made pursuant to section 22 of the 1998 Act whether by reason of having completed that course or otherwise; or
    (b) the start of the following tax year commencing on 6 April after the fourth anniversary of the course start date.

    (2B) Subject to paragraph (2C), a borrower who takes out a post-2012 student loan and who changes their mode of study between full-time and part-time study is required to repay—
    (a) where there is a change from a full-time course to a part-time course, in accordance with paragraph (2A);
    (b) where there is a change from a part-time course to a full-time course before the requirement to repay under paragraph (2A) applies, in accordance with paragraph (2);
    (c) where there is a change from a part-time course to a full-time course and the requirement to repay under paragraph (2A) applies, in accordance with paragraph (2A).

    http://www.legislation.gov.uk/uksi/2012/1309/regulation/5/made
Sign In or Register to comment.
Latest MSE News and Guides

54 ways to ‘DIY it’

According to the MSE Forum

MSE Team Blog

£10 Christmas bonus

For benefits recipients

MSE News

Lidl '£10 off £40 spend' voucher

Via Metro or Daily Mail. Excludes NI

MSE Deals