Student Loan Overpayment

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  • Maplemac
    Maplemac Posts: 1 Newbie
    I have saved enough to repay my daughter's student loan when she finishes next year. Should I repay or not. I am scared that she will not get employment and job centre will force her to use savings to live on. Should I move the lump sum into my account now
    THANK you
  • [Deleted User]
    [Deleted User] Posts: 4,176 Forumite
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    Maplemac wrote: »
    I have saved enough to repay my daughter's student loan when she finishes next year. Should I repay or not. I am scared that she will not get employment and job centre will force her to use savings to live on. Should I move the lump sum into my account now
    THANK you

    Are the savings in her name? If so That would be deprivation of capital which will find her treated as still having the money and refused benefits.
  • silvercar
    silvercar Posts: 46,945 Ambassador
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    Maplemac wrote: »
    I have saved enough to repay my daughter's student loan when she finishes next year. Should I repay or not. I am scared that she will not get employment and job centre will force her to use savings to live on. Should I move the lump sum into my account now
    THANK you

    It may make more financial sense to use that money as a deposit other first property purchase.

    Personally, if you are intent on repaying the loan, I would wait until she has the first step on a career path - no point paying off the loan if she will never make inroads into it and it will end up being written off.

    For any future benefit purposes, it makes sense to keep the money in your accounts. You can pay off the loan yourself, the money doesn't need to go into her account first.
    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.
  • Birty2k
    Birty2k Posts: 13 Forumite
    Hey everyone. Quick question.

    I graduated in 2008 and my current job has never gone over the £21k threshold in any tax year. Sporadically since then I have occasionally paid student loan payments when I have received bonuses, overtime etc, although I still never went over the £21k threshold. Am I entitled to all of these payments back?

    Thanks for any help!
  • Ed-1
    Ed-1 Posts: 3,888 Forumite
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    Birty2k wrote: »
    Hey everyone. Quick question.

    I graduated in 2008 and my current job has never gone over the £21k threshold in any tax year. Sporadically since then I have occasionally paid student loan payments when I have received bonuses, overtime etc, although I still never went over the £21k threshold. Am I entitled to all of these payments back?

    Thanks for any help!

    No because the threshold isn't £21k if you started before 2012. It's £17,775.
  • Birty2k
    Birty2k Posts: 13 Forumite
    Ed-1 wrote: »
    No because the threshold isn't £21k if you started before 2012. It's £17,775.
    My earnings haven't gone over £17,775 either...
  • glider3560
    glider3560 Posts: 4,115 Forumite
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    Birty2k wrote: »
    My earnings haven't gone over £17,775 either...

    Then yes, you can get a full refund if your earnings (including bonus) are less than the threshold. Just send a copy of your P60 or payslips to SLC.
  • Ed-1
    Ed-1 Posts: 3,888 Forumite
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    Birty2k wrote: »
    My earnings haven't gone over £17,775 either...

    You need to look at the threshold applicable in each specific tax year:

    ztayb4.jpg

    http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678511&_dad=portal&_schema=PORTAL
  • jas431
    jas431 Posts: 2 Newbie
    Hi,
    I'd like to give some feedback on the original article.

    Could you please clarify the situation for students that have a year out on placement.
    Basically years 1, 2 & 4 studying at university and year 3 at work in industry.

    By my understanding, the student should not be repaying any of the student loan whilst on placement as they are still registered as students with the university.

    I have the feeling that if the month threshold is exceeded, then the money will be taken from the student.

    Is this something that Martin could raise with the SLC? Is there no way that the SLC can double check with the University?
    What's confusing is the SLC must know that the student has received a reduced maintenance loan and had their reduced tuition fees paid.

    Thanks
  • glider3560
    glider3560 Posts: 4,115 Forumite
    Name Dropper First Anniversary First Post
    jas431 wrote: »
    Hi,
    I'd like to give some feedback on the original article.

    Could you please clarify the situation for students that have a year out on placement.
    Basically years 1, 2 & 4 studying at university and year 3 at work in industry.

    By my understanding, the student should not be repaying any of the student loan whilst on placement as they are still registered as students with the university.

    I have the feeling that if the month threshold is exceeded, then the money will be taken from the student.

    Is this something that Martin could raise with the SLC? Is there no way that the SLC can double check with the University?
    What's confusing is the SLC must know that the student has received a reduced maintenance loan and had their reduced tuition fees paid.

    Thanks

    You only repay after graduating. SLC will only all HMRC to collect repayments from the April after graduation. Before that, nothing is collected (unless you tick the wrong box on the new starter checklist).
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