Quick question for those who have paid off their student loan

Eliot · 7 Feb 2015 at 21:27

Dumb question. I am currently about 2 months off paying my loan. At the moment its something like 220 a month, when i have paid it off is that extra income before or after tax? i.e does my post tax income increase by £220

big_white_dog84 · 7 Feb 2015 at 21:33

It is taken after tax so the cash in your pocket will go up by £220 pm.

Are you paying by direct debit or salary deduction? If it is the latter your payments won't stop for a few months. You will get the extra back eventually with no interest.

[TW]Fox · 7 Feb 2015 at 21:35

If you will pay it off within a few months, ring up and manually clear it before the end of the tax year to avoid continuing to pay after its cleared. Otherwise they will keep taking it from you and then eventually refund it.

Clearing your student loan via salary repayments at 24 is incredibly impressive, well done :eek:

DJMK4 · 7 Feb 2015 at 21:45

Mine will be paid in a month or two aswel

hello an extra £150-£200 in my pocket

Not a single overpayment made

I have it all calculated and will ring them straight away so they stop the payments

jon86 · 7 Feb 2015 at 22:35

[TW]Fox;27599329 said:
...
Clearing your student loan via salary repayments at 24 is incredibly impressive, well done

DJMK4 said:
Mine will be paid in a month or two aswel hello an extra £150-£200 in my pocket ...

Indeed! Well done to the both of you. I paid my £13,000 loan off in 7 years with no overpayments and lots of friends were surprised that I had managed to pay mine off so quickly.

DJMK4 · 7 Feb 2015 at 22:39

I only took out 5k between the years, I had a part time job and didn't go to uni away, so just drove in from every day and didn't really need the max

Part of me wishes I had took out the Max and put in a high interest account though at the time,but not sure tbh

Judgeneo · 7 Feb 2015 at 23:03

First repayment letter I got from student finance, I had only been working a little while so had paid less than the yearly interest... Boy that was depressing.

yer_averagejoe · 7 Feb 2015 at 23:09

By my calculations I finished paying mine off with my last pay cheque. Should I phone them up now or or will the payments stop automatically in April? If I phone them now, they don't actually know how much I've paid until they get the info from the tax man in April, right? So I'll be over-paying either way.

Eliot · 7 Feb 2015 at 23:34

[TW]Fox;27599329 said:
If you will pay it off within a few months, ring up and manually clear it before the end of the tax year to avoid continuing to pay after its cleared. Otherwise they will keep taking it from you and then eventually refund it.

Clearing your student loan via salary repayments at 24 is incredibly impressive, well done

Good tip i'll make sure I do that thanks.

Its a bit off luck as well

I went to uni in Wales so it was half paid for by the Welsh assembly, then I qualified for some kind of scheme this year, which they contacted me about.... something to do with going to uni at a certain time and paying a large amount off quickly, long and short of that was that they knocked a about £2000 off.

DJMK4 · 8 Feb 2015 at 09:05

yer_averagejoe said:
By my calculations I finished paying mine off with my last pay cheque. Should I phone them up now or or will the payments stop automatically in April? If I phone them now, they don't actually know how much I've paid until they get the info from the tax man in April, right? So I'll be over-paying either way.

Phone now

The guy told me to phone when I have paid what I owe, calculate how much student loans have deducted from you since last april on a per month basis just add up the amounts on your payslips., they will tell you how much you owe as from last April, when what you have paid is inline with what you owe, they will put a payment freeze, then check it all out in April

One More Solo · 8 Feb 2015 at 09:38

Very impressed. This is the first year my overpayments have exceeded the interest - by £3! Only £21k to go.

HangTime · 8 Feb 2015 at 20:04

Due to their incredibly crap system you may need to phone them up many times to sort it out, I overpaid by about £2.5k which I claimed back but then had another two months go out after that which I had to claim back again. Getting a stop put on the deductions seems far harder than it should be.

Glaucus · 8 Feb 2015 at 20:08

yer_averagejoe said:
By my calculations I finished paying mine off with my last pay cheque. Should I phone them up now or or will the payments stop automatically in April? If I phone them now, they don't actually know how much I've paid until they get the info from the tax man in April, right? So I'll be over-paying either way.

It won't stop in April.
As they don't have a clue until hmrc get round to telling them, which could be anytime. then however ling for them to tell hmrc to stop collecting. best to phone up. I need to do it. As I've overpaid by about £900 now.

Not looking forward to the phone call. As they are useless. That's tomorrows job, to try and sort it before tax year.

And isn't it paid before tax, so the rebate will have to be taxed and you won't see the flu monthly amounts in your pocket.

Edit - seems it is after tax, even better.

cheesyboy · 8 Feb 2015 at 20:24

Traditionally, HMRC wouldn't know what you have paid until your employer sends them their annual P60 info, which can be as late as July following the financial year end.

For the last year or two, employers have had to make monthly electronic declarations to HMRC, which include all the salary information, such as SL deductions.

I've no idea if this live information gets relayed to the SL companies. But it's a waste of everyone's time if it doesnt ( my bet is that it doesn't)

HangTime · 8 Feb 2015 at 20:27

July is actually pretty good going - I've known it be as late as October before SLC update their records, but hopefully they are a bit better now.

Glaucus · 9 Feb 2015 at 14:09

Well that was painless so far. But that was the easy bit.
Phone call, no waiting at all.
They need reference number, security answer. Amount you've paid this year.
So go through payslips and find the total amount.
If you don't know reference/security question, reset it online first.
If you need to change bank account details, they need your place of birth security question.

They're going to send a stop notice to HMRC and once I get a payslip without a deduction, then take photocopies and send all payslips for this year to SLC, who will then within 28 days deposit a nice amount in bank account with a bit off interest.

Now to see how long and how many phone calls it will take to stop the payments.

helium · 9 Feb 2015 at 14:18

I got a letter through form the student loans company that they had predicted that I would finish my payments this financial year. Their advice was to talk to my employer to stop the student loan payments and set-up a direct debit with them.

I didn't bother as I'll actually be finished in April so I'll wait until they get the update from the HMRC then just pay the outstanding amount. My pay has fluctuated a lot over the last few years so its difficult to work out exactly how much I owe.

McGray · 9 Feb 2015 at 14:54

After reading this thread I decided to give the SLC a call to find out what I owed them.

Turns out I've overpaid my loan and they owe me over £500.

Nice one OP as I would've no doubt continued to pay for the next year or so until they noticed.

EDIT: Also to anyone that's overpaid. They told me to send a letter with my payslips from the last year stating I'd overpaid and it would be sorted within 28 days. Told me to include:

Name
Customer Ref
NI Number
Address

yer_averagejoe · 9 Feb 2015 at 15:06

Glaucus said:
Well that was painless so far. But that was the easy bit.
Phone call, no waiting at all.
They need reference number, security answer. Amount you've paid this year.
So go through payslips and find the total amount.
If you don't know reference/security question, reset it online first.
If you need to change bank account details, they need your place of birth security question.

They're going to send a stop notice to HMRC and once I get a payslip without a deduction, then take photocopies and send all payslips for this year to SLC, who will then within 28 days deposit a nice amount in bank account with a bit off interest.

Now to see how long and how many phone calls it will take to stop the payments.

Just phoned up too and went through the same. Hopefully that stop kicks in now and more isn't taken off me this month. They currently only owe me £140 So assuming I can get that back before April and the stop takes it's effect, I'll be done with them forever.

Thanks for the kick up the bum, OCUK! Hurray for an extra £100 a month

Glaucus · 9 Feb 2015 at 15:07

yer_averagejoe said:
Just phoned up too and went through the same. Hopefully that stop kicks in now and more isn't taken off me this month. They currently only owe me £140 So assuming I can get that back before April and the stop takes it's effect, I'll be done with them forever.

Thanks for the kick up the bum, OCUK! Hurray for an extra £100 a month

Good luck, but don't expect that.
I know people who have had multiple rebates as even when they've stopped it, a couple months latter it's started up again.

And I'm due just under 1k