Student Loan Repayments

  • Thread starter Thread starter SMN
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zhx said:
Random point :

I have a recollection of being in college and being told that if you remove your self from the country for a certain period of time they just don't bother any more and wipe it, can't quite remember the specifics or if indeed i am completely making it up.

On a slightly related note my mother still recieves the odd letter trying to chase my sisters student loan from about 13 years ago but as she's living in NZ its completely ignored :p
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Afraid not. Most governments have a reciprocal agreement to "help us avoid being taxed twice". This means that if you emmigrate to Australia for example, you legally have to inform the SLC / HMRC of your whereabouts so they can provide you with means to continue repaying.

I looked into it unfortunately as i was thinking of emmigrating and skipping out on it. :(
 
mine just started coming out PAYE...then continued to come out...and continued until I phoned and they were like oh you've over paid by one thousand and something pounds, which I then got to claim back. :D
 
SMN said:
Has this happened to anyone else? I'm going to ring up the HMRC later today and tell them because if they find out in 3 years time they'll probably want all of the 3 years not-paid in a lump i imagine :(
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I was working for about 2 years before they took anything off me, then suddenly they started removing 90-odd quid a month the sly buggers
 
I use http://listentotaxman.com/ which is a nifty app for calculating Income Tax, NI, Student Loans contributions (and pensions etc if you want).

If you read their website, they say that if you don't pay back as soon as you should they have the right to demand it as a lump sum, and other situations where they can supposedly demand it all back at once.

According to the literature I've been reading it is your duty to inform your employer that student loan deductions need to me made, and after that if they don't sort it out properly then the company is liable.
 
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Defcon5 said:
I was working for about 2 years before they took anything off me, then suddenly they started removing 90-odd quid a month the sly buggers
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Be happy its only 90 quid, theyve taken 500 quid off me a few times and its at 240 a month at the moment :-/

KaHn
 
When my sister first applied to uni 2 years ago and went to one of those opening days she got told by an advisor that if a student does not pay back any of their debt within 20 years it gets wiped... if this is true (I can't even believe that the advisor even told my sister & the other students this) or not I can't believe how this would still work if most post students did this. Imagine how much trouble anf financial problems it would cause the student loan companes in many years to come.

Liam
 
When my sister first applied to uni 2 years ago and went to one of those opening days she got told by an advisor that if a student does not pay back any of their debt within 20 years it gets wiped... if this is true or not (I can't even believe that the advisor even told my sister & the other students this) I can't believe how this would still work if most post students did this. Imagine how much trouble and financial problems it would cause the student loan companes in many years to come.

Liam
 
SMN said:
Afraid not. Most governments have a reciprocal agreement to "help us avoid being taxed twice". This means that if you emmigrate to Australia for example, you legally have to inform the SLC / HMRC of your whereabouts so they can provide you with means to continue repaying.

I looked into it unfortunately as i was thinking of emmigrating and skipping out on it. :(
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Yeah, I went to Canada on a working visa scheme after I graduated from Uni. In my absence, I'd been sent dozens of letters asking me what I was doing, where I was, if I was abroad etc. After a certain amount of time had passed, they informed me that as I'd failed to get in touch and records showed I'd left the country without informing them, they were going to triple the rate of interest!

Last thing I thought about doing before going away was telling the SLC of my every move, nor had I any idea that I had to do such a thing!

Anyone who has a loan, who is in full time PAYE work that isn't already paying it back has probably got a mistake somewhere, or aren't receiving letters at the correct address. As they certainly don't just let it go by for years without saying anything.


The old 'Leave the country for good and don't pay it' thing has been banded around every since I first took the loan out. I know one friend who has a massive loan who moved to France to setup her own business is trying to go down that route, but I'm not sure whether you really can get away with it forever.
 
KaHn said:
Be happy its only 90 quid, theyve taken 500 quid off me a few times and its at 240 a month at the moment :-/

KaHn
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Are they charging you properly? As £500 equates to a salary of about £85000

No offence intended, just it seems an awful lot! :)
 
If you started a student loan after 2005, it will get written off in 25 years. Martin Lewis (from Money Saving Expert) suggests that it's not worth paying off extra and you should save the extra money as it's likely you will need it in the future and would have to otherwise borrow money at a higher interest rate than the student loan.

I have about 13 years before my loan is fully repaid.
 
Mason- said:
I swear there was a thread like this before and someone said that after 15 years after graduation they still hadn't paid a single penny of their loan back.

Not saying this is good.

But I don't think this is totally uncommon.
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student loan hasn't even been around for 15 years + 3 years graduation time... First year you could get a loan was 98 or 99 I believe.
 
LEK-89 said:
When my sister first applied to uni 2 years ago and went to one of those opening days she got told by an advisor that if a student does not pay back any of their debt within 20 years it gets wiped... if this is true or not (I can't even believe that the advisor even told my sister & the other students this) I can't believe how this would still work if most post students did this. Imagine how much trouble and financial problems it would cause the student loan companes in many years to come.

Liam
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it depends when you started your loan whether the time limit is 20 years, or retirement (, or something else).

you don't get a choice about whether to pay or not so you can't just wait 20 years!
 
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