Paying Back student Loan

Phoebs

Phoebs

Phoebs

Associate
Joined
17 Oct 2006
Posts
808
Location
Manchester,UK
Hi

I just have a few questions about paying back the student loan.

On 1st September I will be signing a new, full time, contract with my current employer as trainee manager earning £16,000 a year. This means i will now be earning over the £15,000.
Do I have to notify the student loans company to tell them this or will they find out for themselves (somehow, i dunno).

Am i right in thinking that I have to pay back 9% of anything i earn over the £15,000 so I would end up paying back £90 a month?

1 final question...when will these payments start?? will they start when i get my first paycheque on the new contract or in April next year?

Thanks in advance :)
 
Afaik it will be in the next tax year and £90 a month is wrong it is £90 a year (9% off £1000 is £90 a year or £7.5 a month).

However if you get a payrise/promotion then you will soon easily be paying off £100 a month or more.
 
mglover070588 said:
Afaik it will be in the next tax year and £90 a month is wrong it is £90 a year (9% off £1000 is £90 a year or £7.5 a month).

However if you get a payrise/promotion then you will soon easily be paying off £100 a month or more.
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It won't be next tax year. Your employer should take the deductions out of your salary per PAYE. If they don't you need to tell them to.
 
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so i only pay back £7.50 a month?
my god that's pointless. Id actually rather pay more! is it possible to ask to pay more?
 
You dont have to tell them they will start taking it as soon as they can get there hands on it!!! haha I started paying mine back in my placement year.
 
I Graduated from uni over 5 years ago and earned much more than £15k every year since then and not paid back a penny. I have no idea why. I have a few other friends in the same position
 
A bit off topic, but did the government say yesterday that they would allow people to pay off student loans as much as they like in addition to the normal way you do it now?

Or did I hear things?
 
BTW there is a point in paying it back as quickly as possible as if the have ridiculous rates like last year (over 4%) when the bank of England was at 0.5% then you are getting ripped of! Work out how much you pay monthly to realize how much money you are losing at the current rate (dunno what this is). If you really need it them obviously take it and it is the best rate loan around but it is still a loan and they are in it to make money.
 
BIGWEB said:
I Graduated from uni over 5 years ago and earned much more than £15k every year since then and not paid back a penny. I have no idea why. I have a few other friends in the same position
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You might want to follow this up otherwise you may get a very nasty shock one day!
 
dane3388 said:
You dont have to tell them they will start taking it as soon as they can get there hands on it!!! haha I started paying mine back in my placement year.
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You shouldn't have to pay in your placement year as you only pay back over £15k after you graduate. So even if you earn £100k on your placement year you do not need to pay back anything on your student loan.
 
decmatt said:
You shouldn't have to pay in your placement year as you only pay back over £15k after you graduate. So even if you earn £100k on your placement year you do not need to pay back anything on your student loan.
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Doesn't stop them trying though, hell they tried to get me to pay UK taxes when I was on my placement year in Austria, that was fairly amusing
 
Lagmeister said:
Doesn't stop them trying though, hell they tried to get me to pay UK taxes when I was on my placement year in Austria, that was fairly amusing
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You can still have to pay UK tax on foreign income. It all depends on your residency and where you're domiciled, how long you're out of the country, etc.
 
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