In Debt
Having a student loan can be extremely overbearing and stressful.
Student-debt.org has some solutions to your debt troubles.

Paying off debt
Loan repayments start after you have graduated and have a minimum income of £15000 per annum (threshold from April 2005). You are not usually asked to make payments on your loan while you are studying expect if you participate in multiple courses back to back and have an income larger than £15000 per annum.

Income
When you have an income of £15000 or more, your employer will automatically deduct your payments to HM revenue and customs from your wages via PAYE or Self assessment. Your payments are calculated and deducted from your wages on a monthly basis. If you are abroad and therefore outside the UK tax system you need to provide the SLC (student Loan Company) with evidence of your income. If it is over £15000 you must make payments directly to SLC.

The tax year runs from 6 April to 5 April, your start your repayments at the beginning of a tax year. When you have just graduated, you will wait until the beginning of the following tax year even if you immediately receive an income of £15000 or above. Income earned before the tax year will not be accounted for, unless you wish to use it for repayments. If you fail to inform the SLC of your yearly income, they obtain the right to demand repayments based on twice the average rate of pay in the UK

When calculating your annual income, some points you need to be considered.

• Any extended or close family’s income will not count towards your total income.
• Child benefits and disability benefits will not count towards your total income
• If you receive a tax return, you may have to use that money towards making repayments on your loan.

Making Payments

There are various methods you can use to make payments:

o        cheque,

o        standing order,

o        debit

o        credit card,

o        postal order or

o        Bank giro credit.

Making extra payments is advantageous since you will end up paying less, due to a smaller amount interest being added. Extra payments will not be refunded, unless you have made an excess payment when your loan total has been paid off.

Failing to make your annual repayment may result in the SLC placing a court order demanding you to give the whole loan in one payment.

Keep a close eye on your payslips and actual scheduled repayments, your employer is legally bound to make the correct deduction from your pay, but it never hurts to keep track.

You may of course repay your loan before the set time if possible.

Cancellation

If you have made all payments requested; your loan, interest and all repayment demands will be cancelled if you:

-die

-reach the age of 65

-become disabled enabling you to work

Loans taken after September 2006 will be written off 25years after you were asked to start repaying it.

If you have complaints, questions, wish to make an appeal or concerns about how your repayments are being dealt with, contact the SLC or HM revenue and customs office.

For more information and contact details go to 

• HM revenue and Customs webpage.
• The Department of Educations and Skills web page.

Student Debt Solutions:

IVAs

Bankruptcy and Debt Management