Repaying Student Loans 2009/10 guide discussion

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  • Stinkybell
    Stinkybell Posts: 193 Forumite
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    mangadarkogirl wrote: »
    The whole 'only pay it off when earning £15,000+' is a total con. I have never earned that much but have paid several times to the SLC through my wage. When questioned about this, the SLC say it does not go by salary but by monthly income....I don't see anywhere that is advertised!!


    Because they take it direct from your salary, they automatically take repayments if your monthly gross is over £1250. Even if your annual pay is well under £15000, this can happen because of stuff like overtime and bonuses. You can write to them with a copy of your P60 each April and they will pay you back direct into your bank account if your annual earnings is indeed under £15000 :cool:
    Chipping away at the mortgage...
    2013:£419k @ 3.14%
    2016:£385k @ 1.79%
    2019:£275k @ 1.84%
    2024: ??
  • MrsManda
    MrsManda Posts: 4,457 Forumite
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    Stinkybell wrote: »
    Because they take it direct from your salary, they automatically take repayments if your monthly gross is over £1250. Even if your annual pay is well under £15000, this can happen because of stuff like overtime and bonuses. You can write to them with a copy of your P60 each April and they will pay you back direct into your bank account if your annual earnings is indeed under £15000 :cool:

    This is a much better system in that otherwise at the end of the financial year you could end up landed with a great big bill to pay immediately.
  • MrsManda
    MrsManda Posts: 4,457 Forumite
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    mangadarkogirl wrote: »
    When questioned about this, the SLC say it does not go by salary but by monthly income....I don't see anywhere that is advertised!!

    You haven't looked at the repayments T&Cs or their website then.
    How much do I repay?

    You will repay 9% of anything you earn over the income threshold.

    The UK income threshold is:
    • £15,000 gross per year
    • £1,250 gross per month
    • £288 gross per week
    For example, if you earn £1,650 per month, you would pay 9% of £400, or £36 per month to your student loan.

    Claiming back student loan repayments if you earned less than £15,000 in the tax year

    It is possible that you had a student loan deduction in a pay period where you earned over the monthly or weekly threshold, but over the whole year your income did not exceed £15,000. This might happen if you receive a bonus payment or work overtime.

    In this situation you will be able to apply to us for a refund of the repayments you have made in that year. However, we will not make a refund unless you ask for one.

    You may decide you do not want a refund, in which case you will pay off your loan more quickly and pay less interest on the outstanding balance.
  • VikkiLee
    VikkiLee Posts: 2 Newbie
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    Hi - my loans were sold off by the Student Loans Company to a company called Honours Student Loans. Will I still benefit from the -0.4% interest rate?
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
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    Beccasavinglots wrote: »
    Does anyone else who took a loan out between 1998 - 2005 feel we are the real losers? We were the first 'trial' for the Government even though we protested against loans loudly through student protests. We missed out on all the former bursaries and the few that have now been introduced. Now we are missing out on the negative interest and we will have to keep paying our loans off until we finish or reach 65. Those taking loans after that period get them wiped after 25 years!

    Not fair i say:confused:

    Student Loans were introduced before 1998 and the repayment conditions on these "mortgage style" loans are far tougher than in your time, although the threshold is higher.
  • davidbsc
    davidbsc Posts: 1 Newbie
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    I'm making a claim for jobseekers allowance and wondering about paying off my student loan - otherwise I have over ten thousand pounds in savings, and over a five thousand pound limit, you are docked a pound a week for every £250 that you have, so unless you can happen to find a savings account that pays 20% interest, it seems worth paying it off. What do you think?
  • meghan_l
    meghan_l Posts: 9 Forumite
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    One thing the guide doesn't cover is the SLC being atrocious at starting repayments. I've been sent forms, confirmed that these have been received, and still my company have not been sent the start notice by HMRC. Why on earth not? Does anyone know how I contact the HMRC to get them to do this? Their website is extremely unhelpful, and when I asked a random helpline for help they just gave me the number of the SLC.

    I recognise that I'm not really losing out by not starting repayments, but I'd like to reduce my loan anyhow! Help?
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
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    davidbsc wrote: »
    I'm making a claim for jobseekers allowance and wondering about paying off my student loan - otherwise I have over ten thousand pounds in savings, and over a five thousand pound limit, you are docked a pound a week for every £250 that you have, so unless you can happen to find a savings account that pays 20% interest, it seems worth paying it off. What do you think?

    If you use your savings to pay off your student loan it will be treated as deprivation of capital and you'll be assessed for benefits as if you still had the money. It's not a good idea..
  • DrRusty
    DrRusty Posts: 16 Forumite
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    Assomeone with a minimal load that was taken out in 1994, the thought that the loan will be reduced further is good news.

    However, a while ago I recall (probably as I am paying the loan off reguarly now) the loan was "sold" to Thesis Services and I now pay them.

    I just can't see them reducing the interest rate to -0.4% as they are a commercial outfit?

    Any ideas if they are likely to reduce the rate as well or am I going to be a loser due to my loan being sold?

    :confused:
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
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    DrRusty wrote: »
    Assomeone with a minimal load that was taken out in 1994, the thought that the loan will be reduced further is good news.

    However, a while ago I recall (probably as I am paying the loan off reguarly now) the loan was "sold" to Thesis Services and I now pay them.

    I just can't see them reducing the interest rate to -0.4% as they are a commercial outfit?

    Any ideas if they are likely to reduce the rate as well or am I going to be a loser due to my loan being sold?

    :confused:

    From the Thesis website

    Interest Rate

    Interest is linked to the rate of inflation and is adjusted each year in line with the Retail Price Index (RPI), based on the position in March. We will be advised of any change to the interest rate by the Government’s Department of Innovation, Universities and Skills (DIUS) and we will inform you of the changes and how this will affect your monthly repayments. Information on how the RPI is calculated can be found on www.dius.gov.uk The rate based on the position in March is applicable from 1st September until 31st August the following year. The interest is calculated daily at the appropriate rate from the day the loan commenced. Interest is applied to the account on a monthly basis.
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