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

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary Name Dropper First Post I've been Money Tipped!
    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
    Former_MSE_Callum Posts: 696 Forumite
    First Post First Anniversary I've been Money Tipped! Newshound!
    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
    Read the latest MSE News
    Flag up a news story: news@moneysavingexpert.com
    Get the Free MoneySavingExpert Money Tips E-mail
  • silvercar
    silvercar Posts: 46,945 Ambassador
    Academoney Grad Name Dropper Photogenic First Anniversary
    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.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • One-Eye
    One-Eye Posts: 66,436 Forumite
    First Anniversary Photogenic Name Dropper First Post
    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
    ScienceTeacher Posts: 8 Forumite
    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
    Ed-1 Posts: 3,888 Forumite
    First Anniversary Name Dropper First Post
    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.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards