student loan coming to an end

orange86

My student loan should be paid off in 3 months time.

I currently pay £260 per month as per my wage slip. Does this mean i will receive an extra 260 in my take home pay or will it be less due to tax?

kaMelo

Student loans are paid net of tax/NI so once your student loan is repaid, your take home pay will increase by the same amount.

A wholly different discussion but, as you are used to not having this amount, maybe redirect some/all of it into your pension instead.

DrEskimo

As above, yes you will get £260 more in your pocket each month. 

I would strongly urge you to contact them and pay the remaining balance over direct debit though. It can take time for your payroll to stop making the payments once the balance is paid, so you end up overpaying if you stay on PAYE. Switching to direct debit can help prevent that. 

orange86

I need the extra income to contribute to pay for health treatments so it will come in hand for the next several months.

I currently contribute 7% and employer 5%. not a great amount

orange86

my company is pants, they contribute up to 5% and i contribute 7%.

They dont pay employers contribution on car allowance, its a sham. They only break our pay up with 'car allowance' to save on bonus and er's pension. If they offered company car scheme, i'd understand but they dont.