Student Loan Repayments

abster31

Hi all, id appreciate some advice. So I just got of the phone to SLC as I was interested to see what my current student loan balance was. When the fees almost tripled I was infuriated as it meant I had to take the loan. Anyway, my debt when I started to repay in 2016 was £29,000.00

Anyway, of the £2,600.00 I have paid in the last two years only £1,120.00 has actually come off the loan, the rest is interest! at this rate I will be paying back £64,450.00 by the end of the 30 years!! Is this correct?

I did vent about this previously and knew it was a raw deal. I paid £1150 last tax year and £1450 this tax year. Even the lady at SLC was amazed. I have been advised by them to make additional voluntary contributions to bring it down.

(Basic background - 37 now, had my children, no career breaks planned so will be paying for the next 30 years)

fiisch

Are you sure they deducted this year's repayments off the balance??

The - rather bizarre - way you repay your student loan is that HMRC collect your payments each month, but it doesn't actually come off the balance of the loan until the next tax year. I had the same thing - I paid a sizeable chunk off my student loan last year, but when I called to check in the May it had still to be deducted.

I think you may well find the balance you were given was as of April 2017. Interest is minimal for us older ex students (1.5% a year I believe), so you're debt even at it's highest point should only be accumulating around £440 interest per year.

zippygeorgeandben

Yes well said fiisch. it's just so strange in this day and age you can't just log in and see what an outstanding balance is.

Novice_investor101

I can view mine online.
https://www.slc.co.uk/students-and-customers/loan-repayment/your-online-account.aspx

zippygeorgeandben

But that doesn't include payments made from this financial year does it? They have to wait to get the amount paid from HMRC. They tell SLC and it then comes off. That's right isn't it?

Novice_investor101

That's correct. That's applies if you call them, too. As the OP has found out. The online site is just a way to do the same thing without having to call them. They issue a yearly statement that can be downloaded online once HMRC have paid the SLC at the end of the tax year.

It does show what interest rate your on & the interest applied & you can update your details.
It's a pain to set up, but useful once done.