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Student loan question

woz Avatar
8y, 3m agoPosted 8 years, 3 months ago
A mate of mine had a student loan, about 12k worth I think he said. But he said to me the other day that he doesn't pay his student loan. Now I said to him it should be taken out automatically as you can't escape it sort of thing. He says he's on about 23k, shouldn't they be taking it from his account? Is it his employers fault or his for not setting it up?

I told him to ring them but he thinks it will probably get sorted, but what if it doesn't - he is escaping from paying it back? Surely they'd know by his NI number?

Thanks in advance

Any similiar stories would be great
woz Avatar
8y, 3m agoPosted 8 years, 3 months ago

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they always catch up with you. The amount you pay bakc depends on how much you are earning. He is in no better position now because he isnt paying it. It just means that he will wither be paying it back for longer or be paying more back when they do catch up with him
he should be paying it back at a rate of 9% on earnings over £15000 (£1250 per month). At £23k he is earning about £1900 per month so should be paying back at around 9% of £650 per month, so £60 per month give or take a few quid!
Repaying Student Loans

Your first repayment will be due in the April after you leave your course (the start of the new financial year).
You’ll repay nine per cent of your earnings over £15,000 (or the monthly or weekly equivalents) - but you can repay more if you want to clear your loan faster.
The more you earn, the quicker you repay the loan. So, someone earning £18,000 a year (the average starting salary for a graduate-level job) will have to pay back nine per cent of £3,000 (£18,000 minus £15,000). This works out at around £5.19 a week.
They are like bounty hunters. You can try and run but they'll find you when you least expect it.
When did he take out the student loans?

There are 2 types ; the old ones and the mortgage type one's at 9% etc. On the older type you had to earn (can't remember exact percentage) about 85% of the National Average earnings then you had to pay it back over 3 or 5 years depending on your circumstances. £23K would be under this. The old one's were only around from about 1998? for a few years.

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