Student Loan Overpayment

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Replies

  • kimmearskimmears Forumite
    13 Posts
    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

    I called about this today, I thought I overpaid when on Maternity leave, I did and they said I was entitled to a £689 refund. However, they said as this was refunding a balance already paid off the loan, this meant that the balance of the loan would increase by the same amount, so be aware that it will take you longer to pay off your loan if you request the refund :)
  • glider3560glider3560 Forumite
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    kimmears wrote: »
    However, they said as this was refunding a balance already paid off the loan, this meant that the balance of the loan would increase by the same amount, so be aware that it will take you longer to pay off your loan if you request the refund :)
    Surely that's a given? It's a loan, not a tax, so asking for a refund of payments will mean your balance increases.


    Also you'll get charged more interest as the balance is higher.
  • sherambersheramber Forumite
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    Your loan is the same as borrowing money.

    You borrow £2000,
    you pay £500
    balance left £1500

    You claim refund of £500 so your borrowing goes up by £500

    you again owe £2000
  • Hi,
    Just after some advice. I have managed to change the Plan I was on through the HR at work, but am I allowed to claim for a refund for the amount I already paid this year?
    Also, in 2016/17 year I paid almost £400 to student loan but I only took home £21195. Is that the right amount to have paid?

    Thanks!
  • The student loans company wrote to my daughter at her last uni address after the end of term so she never received the letter asking her where she was working, they never emailed or wrote to her home address so for the last few years they have put her interest up to 9% when she rang they said there was nothing they could do about it but would put it back to the normal rate now. She is not earning enough yet to start paying it off
  • janieg wrote: »
    The student loans company wrote to my daughter at her last uni address after the end of term so she never received the letter asking her where she was working, they never emailed or wrote to her home address so for the last few years they have put her interest up to 9% when she rang they said there was nothing they could do about it but would put it back to the normal rate now. She is not earning enough yet to start paying it off

    This is why, as part of the terms and conditions of your loan people are required to update their address. It's really easy to make contact with SLC and update them so they have acting accordingly with your duaghter.
  • Possibly a daft question- if I graduated in Summer 2007, do I have to earn over the payment threshold for April 2008 in order to repay my loan (£15000), or over the payment threshold for each particular year since then (ie £17495 in April 2017, £17775 in April 2018, etc)? Just trying to work out if I've been overpaying or not.
  • glider3560glider3560 Forumite
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    Possibly a daft question- if I graduated in Summer 2007, do I have to earn over the payment threshold for April 2008 in order to repay my loan (£15000), or over the payment threshold for each particular year since then (ie £17495 in April 2017, £17775 in April 2018, etc)? Just trying to work out if I've been overpaying or not.

    You pay the threshold for the year of the repayments, i.e. the one that has increased over time.
  • tysonpjtysonpj Forumite
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    My son was not paid for a month but then paid double the following month. As a result the student loan changed from 25/ month to 240. Big difference can he claim a refund
  • glider3560glider3560 Forumite
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    tysonpj wrote: »
    My son was not paid for a month but then paid double the following month. As a result the student loan changed from 25/ month to 240. Big difference can he claim a refund

    No, unless his entire year's earnings are less than the threshold.
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