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Any concerns? We have very nearly completed repaying my student loan – how can I avoid overpaying?

Any concerns? We have very nearly completed repaying my student loan – how can I avoid overpaying?

We frequently get inquiries via our internet sites. We usually do not provide advice, but we attempt to signpost to resources of further support and information. A few of the replies may be helpful to other people, therefore sporadically we are going to anonymously post them as ‘question and response’ news things. We now have gotten concern recently from an educatonal loan debtor who’s got nearly completed repaying their education loan.

Please be aware – this is certainly published as a ‘news’ item, which means that the information and links aren’t evaluated and updated. You ought not depend on it without checking the total facts of your situation because of the figuratively speaking Company or an income tax adviser.


We have very nearly completed repaying my Arrange 1 education loan. I’ve read within the news that borrowers are able to find by by themselves overpaying their loans which clearly I am keen in order to avoid. So what can i really do to avoid this from happening?


We recognize that this is often a typical issue and the one that both borrowers therefore the scholar Loans Company (SLC) desire to avoid. Whether you pay through Pay As You Earn (PAYE) or through Self Assessment unless you are working abroad, you will repay your student loan(s) through the tax system. Overpayments may appear to the final end of repaying the mortgage due to timing variations in sharing information between HMRC, who will be gathering the mortgage repayments, together with SLC whom administer the loans. Nonetheless, HMRC as well as the SLC will work towards more data that are frequent which ideally should reduce this dilemma taking place as time goes by. South Carolina payday loans laws Tax Guide for pupils describes exactly just how education loan repayments are determined and exactly how the repayments are manufactured through the income tax system.

For the time being, if you should be arriving at the conclusion of repaying your student loan then there are lots of actions you can certainly do to avoid overpayments from taking place.

  • Whenever you are about couple of years from completely repaying your student loan(s) you are able to contact the SLC and get to cease repaying your loans through PAYE and alternatively proceed to making repayments straight to the SLC through month-to-month direct debits. We recognize that just a 3rd of borrowers decide for direct debits therefore the SLC are keen to encourage more borrowers to take action because it should avoid overpayments.
  • Make sure that the SLC has up-to-date contact details so if need be that they can contact you. The SLC should monitor borrowers’ records by having a view to pinpointing if you are getting near to repayment that is full. Then they will contact you to offer to switch you to direct debit repayments if you are nearing the end of your repayments.
  • You will have to remember that for those who have fluctuating earnings, for instance you work overtime or get bonuses, then it could be problematic for the SLC to ascertain once you could be nearing complete payment. You might want to contact the SLC to inquire of to be relocated to an immediate debit payment plan.

Should you go on to direct debit repayments then there are many points to be familiar with:

  • Failure to steadfastly keep up with direct debit repayments will imply that you may back be moved to repayments through the PAYE tax system.
  • Whenever changing your work, you ought to be expected to perform a brand new beginner list that may ask you if you’re repaying your student education loans. On concern 11 ensure you state that you will be repaying your education loan right to the SLC by direct debit otherwise HMRC will begin deducting repayments through PAYE – so you can be having to pay twice and overpayments will happen.

Then you should contact the SLC as soon as possible and ensure they have your correct bank details if you have already overpaid. But be skeptical of every phishing email messages or telephone calls from fraudsters pretending to function as the SLC!

To learn more about repaying student education loans see our begin to see the learning student loans area in Tax Guide for pupils.

Contact: Claire Thackaberry (be sure to utilize form at e mail us) or follow us on Twitter: @litrgnews

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