How you repay your loan (now closed) Watch

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Student Money Week 2017
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Jackie is here to answer any questions you have about repaying your student loans.


SFE Advisor for this Q&A

Jackie McGale, Repayment Manager

Jackie is a Repayment Manager at the Student Loans Company. She’s responsible for administering the repayment process in partnership with HM Revenue and Customs.
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Suaveit
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Is it true that if you spend over 7 Years working abroad that you do not have to re-pay your loans?
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jelly1000
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Do you have to notify student finance if you go and work abroad after university?
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Leeaaha2052
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When I finish university how does paying back loans work?
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_dreamcatcher_
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Hello,

I have a few questions regarding the repayment of the student tution loan. I have used the student finance calculator in order to see how my repayments will work out. I am puzzled by one thing though. Everywhere on the site it says that 9% of your salary that comes over the threshold will be payed back. I put an annual wage of 22,000 pounds into the calculator and everything seemed fine apart from the fact that the annual repayment amount kept increasing severly. Does that include my wage increasing or is it based purely on interest because if I entered a wage of 22,000 how come is my 15th repayment calculated at 3,500 pounds annualy? Does the repayment amount get higher every year regardless of one's wage? And also, why is the interest rate constantly growing? Is that just a prediction on the growth of RPI considering I entered a wage far below the 40,000 and should not be admitted the additional 3% increase.
Also, if I am starting my course in September 2016, when will the first payment be made and will I recieve any proof of payment since I need to enclose it with my scholarship application at the beggining of the school year.

Thank you for your time.
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Jackie McGale
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(Original post by Suaveit)
Is it true that if you spend over 7 Years working abroad that you do not have to re-pay your loans?
Hi, thanks for your question.
No, this is a common misunderstanding; your loan still has to be repaid when you are overseas. Your loan becomes due for repayment in the April after you finish or leave your course and if you will be overseas for a period of more than 3 months at that time, you will need to notify us. We will send you an Overseas Income Assessment Form and you will be required to return this with evidence of your income to enable us to calculate how much you need to repay. Your monthly repayments will be based upon the earnings threshold for your destination country. If you are not working when you are overseas e.g. you are travelling, or if you are working and your income is below the repayment threshold for your destination country, then you will not be required to make repayments but you still have to return your form with income evidence to show this. It is important that you send us the information we need otherwise a fixed repayment schedule will be set up for you. Further information on this and on how to repay your loan from overseas can be found on our repayment website www.studentloanrepayment.co.uk.
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Jackie McGale
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(Original post by jelly1000)
Do you have to notify student finance if you go and work abroad after university?
Hi, thanks for your question.
Yes, you need to notify us if you are going overseas for a period of more than 3 months. When you notify us we will send you an Overseas Income Assessment Form and you will be required to return this with evidence of your income to enable us to calculate how much you need to repay. Your monthly repayments will be based upon the earnings threshold for your destination country. If you earn under the repayment threshold you are not required to make repayments but you still have to return your form with income evidence to show this. It is important that you send us the information we need otherwise a fixed repayment schedule will be set up for you. Further information on this and on how to repay your loan from overseas can be found on our repayment website www.studentloanrepayment.co.uk.
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Jackie McGale
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(Original post by Leeaaha2052)
When I finish university how does paying back loans work?
Hi, thanks for your question.
If you’re a full-time student you’ll be due to start repaying your loan the April after you finish or leave your course. If you’re a part-time student you’ll be due to start repaying the April four years after the start of your course or the April after you finish or leave your course, whichever comes first.
You only repay once your income is over £21,000 a year, £1750 a month or £404 a week. If you’re employed, your employer will take your repayments directly from your salary along with tax and National Insurance. It is important to know that a student loan deduction will be made even if you don’t earn £21,000 a year but exceed the weekly or monthly threshold at any point in the year, for example if you work overtime or get a bonus.
You will repay 9% of your income over the threshold. For example, if you’re paid monthly and earn £2,250 before tax you’ll repay 9% of the difference between what you earn and what the threshold is. So:
£2,250 - £1,750 = £500
9% of £500 = £45
So your student loan repayment would be £45 in that month.
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Jackie McGale
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(Original post by _dreamcatcher_)
Hello,

I have a few questions regarding the repayment of the student tution loan. I have used the student finance calculator in order to see how my repayments will work out. I am puzzled by one thing though. Everywhere on the site it says that 9% of your salary that comes over the threshold will be payed back. I put an annual wage of 22,000 pounds into the calculator and everything seemed fine apart from the fact that the annual repayment amount kept increasing severly. Does that include my wage increasing or is it based purely on interest because if I entered a wage of 22,000 how come is my 15th repayment calculated at 3,500 pounds annualy? Does the repayment amount get higher every year regardless of one's wage? And also, why is the interest rate constantly growing? Is that just a prediction on the growth of RPI considering I entered a wage far below the 40,000 and should not be admitted the additional 3% increase.
Also, if I am starting my course in September 2016, when will the first payment be made and will I recieve any proof of payment since I need to enclose it with my scholarship application at the beggining of the school year.

Thank you for your time.
Hi, thank you for your question.

The student loan calculator is set up to forecast your future earnings and this is done using average earnings growth. It is intended to be a guide to let you see how a possible increase in your earnings would affect your monthly repayments. The amount of interest you are charged doesn’t affect your repayments as these are based solely on your earnings and not on what you owe. With regards to your question about your first payment, please contact SFE on 0300 100 0607 and they will be able to advise on your particular circumstances.
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Jackie McGale
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(Original post by Suaveit)
Is it true that if you spend over 7 Years working abroad that you do not have to re-pay your loans?
Hi, thanks for your question.
No, this is a common misunderstanding; your loan still has to be repaid when you are overseas. Your loan becomes due for repayment in the April after you finish or leave your course and if you will be overseas for a period of more than 3 months at that time, you will need to notify us. We will send you an Overseas Income Assessment Form and you will be required to return this with evidence of your income to enable us to calculate how much you need to repay. Your monthly repayments will be based upon the earnings threshold for your destination country. If you are not working when you are overseas e.g. you are travelling, or if you are working and your income is below the repayment threshold for your destination country, then you will not be required to make repayments but you still have to return your form with income evidence to show this. It is important that you send us the information we need otherwise a fixed repayment schedule will be set up for you. Further information on this and on how to repay your loan from overseas can be found on our repayment website www.studentloanrepayment.co.uk.
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Jackie McGale
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We have a new playlist of videos giving lots of useful information on repayment, you can view them here https://www.youtube.com/playlist?lis...UUzs-B8ja793BE
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Jackie McGale
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Please read our quick start guide here http://slc-apps.co.uk/Quick-Start-Fi...uide/Home.html
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Jackie McGale
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Did you know you can visit SFE's dedicated student finance zone on the Student Room for more information on student finance, including a range of helpful tools and guidance? www.thestudentroom.co.uk/studentfinance.
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Ray SFE
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A huge thank you to Jackie for being involved in today's final live webchat. Check back in with your questions from 10am tomorrow when you can expect more of the same stimulating and informative conversation. Be a part of it!

And remember, for more information on student finance, visit SFE's dedicated zone here

Bye for now, :cool:

Ray J.
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