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Student Loan took payment without me knowing
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Hi All,
I took a Student Loan during my time at University and graduated in summer 2006. I recall the grant comming back during my final year and felt hard-done-by when i was told that it's for new comers only!
A statement from SLC revealed that the loan had risen from just under £8000 to over £9000. This was due to inflation plus a bit extra has stated on the statements.
I felt pretty resentful that I was told that no inetrest would be charged but felt it was, loan was only increased even when inflation decreased and that i was not allowed to have a grant although a neighbour repeating his first year for the 4th time was!
So, i decided that i'm going to save up and pay back the loan as soon as! I felt they can't be trusted and they will mess me about more in future.
But, i started working over a year afterwards and was aiming to pay personal debts. I'd chnaged my address since and am certain that i have informed SLC.
SLC has been at the back of my mind as i try to make ends meets with my finances and i've had no post from them!
Suddenly, i open my paycheck and notice £40 deducted from my ~£1300 monthly paycheck.
They did not even in form me?
I currently need to pay barclays approx £300, local community centre £350 & Manchester English Acad £300 and thats before my expenses.
Are they allowed to deduct money without my consent or at leasting informing me?
Isn't £40 a bit too much?
:shocking:
Thanks for taking your time to read.
I took a Student Loan during my time at University and graduated in summer 2006. I recall the grant comming back during my final year and felt hard-done-by when i was told that it's for new comers only!
A statement from SLC revealed that the loan had risen from just under £8000 to over £9000. This was due to inflation plus a bit extra has stated on the statements.
I felt pretty resentful that I was told that no inetrest would be charged but felt it was, loan was only increased even when inflation decreased and that i was not allowed to have a grant although a neighbour repeating his first year for the 4th time was!
So, i decided that i'm going to save up and pay back the loan as soon as! I felt they can't be trusted and they will mess me about more in future.
But, i started working over a year afterwards and was aiming to pay personal debts. I'd chnaged my address since and am certain that i have informed SLC.
SLC has been at the back of my mind as i try to make ends meets with my finances and i've had no post from them!
Suddenly, i open my paycheck and notice £40 deducted from my ~£1300 monthly paycheck.
They did not even in form me?
I currently need to pay barclays approx £300, local community centre £350 & Manchester English Acad £300 and thats before my expenses.
Are they allowed to deduct money without my consent or at leasting informing me?
Isn't £40 a bit too much?
:shocking:
Thanks for taking your time to read.
Post edited by JustV on
0
Comments
Also once you start earning over this threshold they start adding interest. The biggest shock for me was when I got my yearly statement and found that although they had been taking deductions from my monthly wage the interest added was more than I had paid off so my loan actually increased.
Is £40 per month (before tax) really going to make that big a dent in your plans?
Thanks for your replies.
It doesn't help that I got married outside the EU, now am diashing out £200 for visa and £500 for appeal that I'm paying in installments. Soon I'll have to pay the full spouse visa and citizenship that amounts to a few thousand i believe.
I'm sik&tired of everday anyways.
Got jumped of these druggies and i still see them driving round in their £65K cars and it mnakes you wonder why people that work hard have to suffer!
Anyways, how do you tie a noose? I just can't get it right!
Thanks again! :thumb:
However, you would have signed up to it, sorry.
What this means is that whilst you're studying the balance does go up, but that's because inflation (usually) goes up.
If you borrow £100 in January this will buy a basket of shopping. By the end of the year that basket will cost £103 if inflation is 3%. The interest rate is the inflation rate, so your interest will be £3, meaning you owe £103. However in real terms the amount you owe hasn't changed- you owed a basket of shopping in January and you still owe a basket of shopping in December.
If you want to pay it back early that's your choice, but it's the cheapest loan you're ever going to get. You can usually earn more interest from a cash ISA than you pay out to the SLC so there's no financial benefit in paying it off early.
Your monthly repayment is fixed at 9% of whatever you earn over £15,000pa. If you're employed, this comes off at source through PAYE.
Oh, don't start - we'll have somebody saying "HA! I pay £73!" and so on...
*yawn*
As he said, it's the best loan you'll ever get and it's written off after 25 years anyway.
ShyBoy, you're completely and utterly wrong.
If you took out your loan before the 2006/07 academic year then any outstanding balance is written off when you turn 65 and not before.
If you took out your loan from the 2006/07 academic year and onwards then any outstanding balance is written off after 25 years, or 35 years if you took a Scottish student loan package.
Ok, I got mixed up with 15 years and 25 years.
You really need to take a chill pill sometimes, seriously.
Christ.
:yes: Am I alone in pretty much being bombarded with information regarding loans at open days and when applying for UCAS via college?
Student finance don't care about this. And neither do any other loan company.
That will go down when your pay settles back down. Things like back pay or bonus will skew that montsh deductions. Ditto for NI and income tax.
Your employer will get informed to take your deuctions but are no obligation to tell you. As for you not been being told, tough. The conditions for deductions are clearly set out in the terms of the loan.
Well I pay £190 a month so there
At the end of the day, it's a loan, not a grant. You repay the capital plus interest. It is a very low rate of interest compared to what you would otherwise get from a bank, but it remains a loan nonetheless.
Sorry to hear you are having problems with your finances.
As others have said, the Student Loans Company can automatically take money out of your salary once you are earning a certain amount. Interest is charged on the loan, but it is meant to reflect inflation rather than a commercial level of interest a bank may charge.
The important thing to do is take control of your finances. Work out who all your creditors are, and then work out what your monthly expenses are. Creditors will want you to demonstrate you are trying to pay them back, so if you can explain to them how much you can afford each month they may agree to reducing your monthly repayments.
Organisations like your local Citizens Advice or the National Debtline can help you with dealing with creditors and managing your debt; and you'll find lots of useful information in our credit and debt section.
Good luck,
Olly
:mad:
i have been paying off my student loan since late last year but i haven't had a statement in years. my fella recently got one but i didn't. i'd like to know how much i owe to be honest!
The SLC take a good few months after the end of the tax year to send statements out as they have the deductions information passeto them HMRC who in turn get the information from the year end payroll records. Takes a while to filter through. If you dont get anything by Mid-September ring and chase.