Student loans

[Jack]

I'm going to be paying off the roughly ~£2k outstanding on mine, mainly as the extra money in pocket would come in handy due to imminent reduction in salary lol

My question is this... as I'm on the PAYE repayment option, my balance is calculated once a year. Does this mean if I pay it off after April 5th this year, it won't get calculated into the balance for 2012-13 and I'll spend all of the coming year overpaying and have to claim it all back (or call them and send in proof that I'm still paying as per the instructions on their site)?

Where as if I pay it prior to April 5th, they'll calculate my 2012-13 outstanding balance inclusive of the additional repayment, see I've squared up, then no more monthly payments?

[devonskippy]

From my dealing in PAYE and HMRC at work, i'd say things will change when your employer submits their P35 to HMRC (any time after 5th April depending on their payment frequency), this process also produces your annual P60.

When HMRC receive the information they forward it to SLC to work out your balance.

If you pay it off by 5th April then i guess they may continue deducting until HMRC provide your details to SLC who then have to advise HMRC to stop deductions who then have to contact your employer; i'm guess this may take weeks not days! I'd say you'll still need to claim back any deductions made between 5th April and HMRC notifying your employer.

If you pay it off after 5th April then there's a good chance you will end up over paying as you say; SLC have been slated a lot over this state of affairs!

Wish i could pay my balance off!

[Stuart]

What you do is take the statement that you receive, do one month of PAYE payment to it and keep the payslip, then call up the ONE lady at the SLC who seems to answer the phones and make a single payment to cover the remainder calculated from the Latest balance - Apr12 page contributions. Then ask them to put a STOP on the account, you will be wise to tell your HR department to stop too as they might miss it.

If you do overpay you need to supply proof and you get a bacs payment back.


OR pay now, hope they calculate it properly and have a right old fight.

[Nova_Tek]

I'd give them a call for them to re-calculate what's left and then arrange payment.