Student Loan Overpayment ? Mortgage Style and Plan 1 repayments = 7% of 'Gross' Salary!!!

edited 7 April 2021 at 10:59AM in Student MoneySaving
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tigerpants_2tigerpants_2 Forumite
12 Posts
Part of the Furniture First Post Combo Breaker
edited 7 April 2021 at 10:59AM in Student MoneySaving
  Wondering if anyone could please advise? 

After some 22 years, I last year hit the earnings threshold for repaying student loans taken out in England in the late nineties. 

I studied again in Wales from 2002 until 2006. 

I am now paying nearly 7% of my 'gross salary' in student loan repayments and was wondering if anyone had any advice on reducing these payments or whether I have cause for complaint?           

1997 = £53.60 per month - Thesis Servicing - Direct Debit 
1998 -1999 = £88.59 per month - Erudio Customer Management - Direct Debit    

2002 - 2006 = £100 per month - Plan 1 I believe - Deducted directly from salary

Total repayments = £242.19 per month

The early loans would have been wiped in 3 years... I considered dropping a day at work but felt this would affect pension contributions.

I am nearly 3 years into an IVA and this is now affecting affordability on that arrangement - If it wasn't for fuel savings made because of Covid -19 I would be really struggling now.

Any advice would be appreciated. 

If I were a student today I believe I would only pay 9% on earnings over 26k        


  • I_Am_MilkmaidI_Am_Milkmaid Forumite
    2 Posts
    Part of the Furniture First Post Combo Breaker
    Hi there,

    Just a note to say I'm keen to hear the answer to this too!  I've just hit the repayment threshold (only 4 years to go till write-off), and the monthly repayment amount from Erudio is such that the full amount will be paid back to them in that time.

    Now regretting not taking the settlement orders they were posting out a few years back!

    Equates to 6.6% of my gross monthly income.

    I too am considering a drop in hours!
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