We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

student loan coming to an end

Options
orange86
orange86 Posts: 57 Forumite
Ninth Anniversary 10 Posts Name Dropper Combo Breaker
edited 31 July 2023 at 11:24AM in Student MoneySaving
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?

Comments

  • kaMelo
    kaMelo Posts: 2,856 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    edited 25 July 2023 at 10:39PM
    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
    DrEskimo Posts: 2,435 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    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
    orange86 Posts: 57 Forumite
    Ninth Anniversary 10 Posts Name Dropper Combo Breaker
    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
    orange86 Posts: 57 Forumite
    Ninth Anniversary 10 Posts Name Dropper Combo Breaker
    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.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.