Paid off my plan 2 loan up to £3k left

IAMIAM

I have reduced my balance from 9k to 3k to be able to move onto paying by direct debit.
The interest is currently 6.5% due to move to 7.2/5% I believe.
I am paying £150 per month for 24 months approx.
How do the student loans company know my salary and what % interest to charge me over these 24 months - especially if I am not paying through PAYE anymore...

Ed-1

IAMIAM said:

I have reduced my balance from 9k to 3k to be able to move onto paying by direct debit.
The interest is currently 6.5% due to move to 7.2/5% I believe.
I am paying £150 per month for 24 months approx.
How do the student loans company know my salary and what % interest to charge me over these 24 months - especially if I am not paying through PAYE anymore...

https://www.legislation.gov.uk/uksi/2012/1309/regulation/10/made

(11) The borrower’s interest income is—

(a) for a borrower to whom regulation 28 (but not regulation 42) applies, total income as calculated in accordance with regulation 29(4) but without excluding the repayment threshold in regulation 29(4)(a);

(b) for a borrower to whom regulation 42 (but not regulation 28) applies, earnings as defined in regulation 41;

(c) for a borrower where the Authority makes a determination that the borrower may repay a loan by income-related instalments under regulation 75, gross income as defined in regulation 71;

(d) for a borrower to whom both regulations 28 and 42 apply in the same tax year, total income as calculated in accordance with regulation 29(4) but without excluding the repayment threshold in regulation 29(4)(a).

These are the original (unamended) regulations to see what the above numbered regulations are referring to:

https://www.legislation.gov.uk/uksi/2009/470/contents/made

Regulation 28 is for those required to submit a tax return.

Regulation 42 is for those in PAYE.

You can only move onto direct debit repayments if you are repaying under regulation 42 (Part 4):

https://www.legislation.gov.uk/uksi/2009/470/regulation/18/made

SLC will continue to receive details of your "interest income" from HMRC regardless of whether you are having repayments deducted through PAYE.

IAMIAM

Thanks for this. I have paid it down to £2k. Switched from PAYE and now onto DD from 1st June. I will pay £2k on 1st of June probably and forget student loans ever existed!