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    student loans taking too much money from me ... need advice

    student loans are taking too much money from me, and I cannot afford for them to be taking the amount they currently are.

    I have spoken to HR and they say they cannot do anything about them taking this much money.

    can anyone please advise on how to make them take less ... I have proofs of debts that need paying.

    thanks

    29 Comments

    Citizens Advice Bureau?

    Original Poster

    i know there are a lot of in-their-20's people on here so would like to know what others owuld advise first

    CAB is always an options, i agree.

    thanks

    how about getting in touch with student loans directly?

    This is just a suggestion, but when I was paying back my loan I was able to deffer the payment. Is that not a possibility now? if you are not able to manage the repayment maybe you can ask them to reduce it for a while or deffer it to the next financial year.

    Try that and see .... ;-)

    Original Poster

    Nemz;2268232

    This is just a suggestion, but when I was paying back my loan I was able … This is just a suggestion, but when I was paying back my loan I was able to deffer the payment. Is that not a possibility now? if you are not able to manage the repayment maybe you can ask them to reduce it for a while or deffer it to the next financial year.Try that and see .... ;-)



    worth a shot.
    I want to do my homework before approaching student loans so i know what is possible so will put this onto my short list.

    Speak to SLC. I rang them recently only to discover I have overpaid by over £500 - but because of the Treasury's absolute uselessness and downright criminal behaviour, they would have continued taking money from my pay packet every month.

    They should let you defer payments, speak to them, they were really helpful to me.

    *decided not to take a student loan in the end.

    kippy;2268850

    *decided not to take a student loan in the end.


    Good for you, but some people have no choice.

    yeah not saying which was better everyone's situation is different ... but i added up the cost and decided i wasnt going to owe anyone my education. i didnt ask for money from parents either, which was tough. i applied for grants and got some money for uni fees. had to work a lot harder through college to earn the money ... and didnt exactly have a weekend life as such. i do think it is a choice, and some of my mates did take longer to grad but also had related work experience. i was just lucky ...

    Original Poster

    kippy: Good for you

    little tiger: thanks.

    How much are SLC supposed to take from your pay packet ? It looks more like a percentage than a fixed amount.

    Cyrus;2269813

    How much are SLC supposed to take from your pay packet ? It looks more … How much are SLC supposed to take from your pay packet ? It looks more like a percentage than a fixed amount.


    It is 9% of your total earnings after £15,000... so if you earn £17k a year, its 9% of £2k IRC.

    stop earning so much money?

    are the debts caused by the loan repayments or other things, this is what the SLC have to take into consideration. Cos the money has to be payed back in the end doesnt it.

    Original Poster

    well, acoording to post 12, they are already taking more than they are supposed to.
    Can someone confirm if its all relative to the base salary .... and that bonuses etc do not count ?

    #13 : Who wants to stop earning more mone - silly comment IMHO

    Cyrus;2270955

    well, acoording to post 12, they are already taking more than they are … well, acoording to post 12, they are already taking more than they are supposed to.Can someone confirm if its all relative to the base salary .... and that bonuses etc do not count ?#13 : Who wants to stop earning more mone - silly comment IMHO



    No, bonuses will count. They divide £15,000 by 12 to give your monthly allowance of £1250 (pre tax) anything over this they will take 9% of any income, no matter whether it is general income or a bonus or back pay etc.

    The upside is that given that it is taken out of your gross (pre tax) income, it is tax deductible - ie if you weren't paying the loan you'd actually end up paying a bit more income tax.

    littletiger;2271424

    No, bonuses will count. They divide £15,000 by 12 to give your monthly … No, bonuses will count. They divide £15,000 by 12 to give your monthly allowance of £1250 (pre tax) anything over this they will take 9% of any income, no matter whether it is general income or a bonus or back pay etc. The upside is that given that it is taken out of your gross (pre tax) income, it is tax deductible - ie if you weren't paying the loan you'd actually end up paying a bit more income tax.



    agreed

    (wish I could pay my loans out of my gross rather than my net!)

    bug199;2271657

    agreed(wish I could pay my loans out of my gross rather than my net!)



    - and credit cards!!

    Original Poster

    thanks all

    Original Poster

    any other advice/experiences would still be appreciated.

    Become a teacher...the goverment then pays it for you

    1) dont borrow (dont use credit cards)
    2) save more (that could mean cut down on the good stuff like pints of beer and such). It might even mean to stop using the car due to high fuel prices, but thats extreme.

    this is obvious to anyone, but like anyone it could also be difficult. Im afraid my advice can take you this far, as im not familiar with taxes and such (theres too many of taxes, I don't even know how many there are)

    Banned

    It may help if you tried being a little clearer on whats happening here, :thumbsup:

    Artonox;2275651

    1) dont borrow (dont use credit cards)2) save more (that could mean cut … 1) dont borrow (dont use credit cards)2) save more (that could mean cut down on the good stuff like pints of beer and such). It might even mean to stop using the car due to high fuel prices, but thats extreme.this is obvious to anyone, but like anyone it could also be difficult. Im afraid my advice can take you this far, as im not familiar with taxes and such (theres too many of taxes, I don't even know how many there are)



    This is a loan from university tuition fees, etc - so these comments really don't apply.

    Plus, students should probably take all of the student loan that they can as the interest rates are only in line with inflation... so even if you don't need it to pay for university you could put it towards a house and save on mortgage interest!! :thumbsup: And in some cases (such as if you never earn more than £15,000 per year within 25 years or if you decide to become a teacher) you won't have to pay it back.

    As someone already said, just ring them and see what your options are. No matter what anyone here tells you, you still have to ring up SLC to confirm it!

    But you should be able to defer payments if you can't afford them right now.

    Although personally i find the amount they take to be quite reasonable. But i guess if you live in London or somewhere expensive like that then it might not be so reasonable.

    I think they should maybe increase the threshold for people living in more expensive areas.

    Banned

    duckmagicuk2;2275832

    This is a loan from university tuition fees, etc - so these comments … This is a loan from university tuition fees, etc - so these comments really don't apply.Plus, students should probably take all of the student loan that they can as the interest rates are only in line with inflation... so even if you don't need it to pay for university you could put it towards a house and save on mortgage interest!! :thumbsup: And in some cases (such as if you never earn more than £15,000 per year within 25 years or if you decide to become a teacher) you won't have to pay it back.



    I think artonox, is trying to help on how to save money now so as able to afford the repayment. The op hasnt exactly been clear as exactly what is being taken here, as 9% on anything over 15000 seems quite a reasonable figure

    Well on my experience, companies dont give a dogs biscuits on payments - they have the "you must pay or else" attitude. That's why when I look at it, instead of asking them (though you should ring them first - I would), I tend to ask myself.

    if you are a teacher how long do you have to work for and not pay it of??
    my friend is going to start a pgce and he had paid £3k a few days ago what should i advise him to do?>

    Original Poster

    being a teacher is interesting to note.
    will call them and find out whats happening ...

    Original Poster

    littletiger;2271424

    No, bonuses will count. They divide £15,000 by 12 to give your monthly … No, bonuses will count. They divide £15,000 by 12 to give your monthly allowance of £1250 (pre tax) anything over this they will take 9% of any income, no matter whether it is general income or a bonus or back pay etc. The upside is that given that it is taken out of your gross (pre tax) income, it is tax deductible - ie if you weren't paying the loan you'd actually end up paying a bit more income tax.



    i just read somehere that its £1000 pretax
    are you sure about the above ?

    Original Poster

    so i called them up
    as its a loan i took out after 1998, they will not help me one bit. I tried talking to the team leader and even calld again to speak to someone else but they just will not budge

    Its 9% a month on anything earched over 1250 (pre-tax)

    and the RPI/CPI for 07/08 is 4.8% !!! .... that's double of 06-07 (which was 2.4%)
    CRAZY amount of tax each year.

    Noithing I can do ... gotta bite the bullet and move on ...
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