Got a student loan? Bizarrely, working extra shifts or getting a bonus this Christmas could COST you

Former_MSE_Callum

See MSE Callum's blog: Got a student loan? Bizarrely, working extra shifts or getting a bonus this Christmas could COST you cash

[Deleted User]

Isn't that how its supposed to work? A % of your earnings over £420 per week? My DD did a lot of overtime last month she paid some to her student loan and lost £ off her UC, thats how the world works hardly news???

Former_MSE_Callum

venison wrote: »

Isn't that how its supposed to work? A % of your earnings over £420 per week? My DD did a lot of overtime last month she paid some to her student loan and lost £ off her UC, thats how the world works hardly news???

Might be worth giving it a second read

silvercar

Fairly niche, to be earning exactly an amount that wouldn't trigger a repayment if you look at standard pay each month, but to earn enough in one month to trigger a repayment requirement for the year in total and then for the numbers to work out that you would be better off not doing the extra.

One-Eye

It might not affect everybody, but there must be thousands of ex-students earning close to the repayment thresholds.

1) Defer putting in for the overtime until the following month (or subsequent months) to keep yourself under any thresholds.

2) See if you can take holiday in lieu of payment.

3) On a more permanent basis, look at salary sacrifice to fund a pension - this also applies to those earning just over the repayment thresholds.

ScienceTeacher

So I am scheduled to earn £25,100 this year and have so far paid £572 of my student loan, and will probably pay closer to £700.
If calculated annually, I should have only paid £9 back. Any chance I can claim back the £691?
Really annoying if not!
I phoned SLC and they said "it is impossible to repay more than you have to". Argh. Hey ho.

Ed-1

ScienceTeacher wrote: »

So I am scheduled to earn £25,100 this year and have so far paid £572 of my student loan, and will probably pay closer to £700.
If calculated annually, I should have only paid £9 back. Any chance I can claim back the £691?
Really annoying if not!
I phoned SLC and they said "it is impossible to repay more than you have to". Argh. Hey ho.

What is your repayment threshold: £25,000 (post-2012 loans) or £18,330 (pre-2012 loans)? Have you told your employer you are on plan 2 rather than plan 1 as they may be taking more than they should.