Quizzes & Puzzles2 mins ago
Student Loan
3 Answers
I don't quite understand my student loan. I'm now earning enough to qualify for payments, but:
1. Do I have to tell them this or will they find out and bill me for repayments?
2. According to my statement, the monthly interest is around �30, yet my payment is about �270 per year - you do the math! Is it mathematically possible to pay this thing back? Ever?
Answers
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Hi
The Inland Revenue will automatically collect the payment once you commence work. I think you have to earn at least �15,000 now before payments are taken out.
The more you earn, the more they take out. I pay �48 a month based on a student loan of just over �9000, but when I have received a bonus, the Inland Rev clock this and take out more, ouch.
Never mind, it seemed great at the time of being student, now we have to pay the consequences. However, you hardly miss the money seeing as you weren't earning in the first place.
Don't worry about it. I just ignore the statements and carry on paying. You can't get out of paying unless you reach retirement, earn less than the threshold or emigrate.
You don't need to contact the inland revenue they will start taking money when they notice you are working. If you only finished uni in 2005 you don't have to make any repayments until the April after you have finished and it takes them a while to do the admin.
I left uni 2 years ago and only pay back �40 pound a month on a �15000 loan. i have't started paying any of the capital back yet.
I wouldn'y ignore your statements when you get your P60 at the end of a tax year you need to check that what your employer has taken off you for payments is the same amount as on your loan statement. It was on Watchdog that loads of peoples statements were wrong and were having to pay back more.
Hello,
I started out like you in 2002 paying back just �19 per month for my student loan, I now pay �165 per month. Over time your pay will hopefully increase but if you are willing and able you can pay off more by sending a cheque direct to the SLC.
Also note that it may take a few months for the Inland revenue to start deducting the payments from your wages.
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