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    I understand that the loan repayments are taken from your salary but if you are not working can the SLC treat lump sums such as inheritances, lotto wins and a pension lump sum as income and demand payments? These lump sums would be non-taxable.
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    Repayments are based on income, not assets. You could theoretically win the Euro Millions, not take an income from your investments and still make your declaration each year that you have no income and therefore do not have to make repayments! Obviously this is hyperbole, but the basic message is that your repayments are calculated on your income, not savings. The only time savings would come into play would be if you had so much you were drawing an income from the interest/dividends. This 'income' would then be assessed for repayment. I believe it is a low threshold of £2000 income from interest and dividends.
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    Brilliant, I was worried that the SLC would claim all the loan from my private pension lump sum next year (especially since I will not qualify for the state pension for a few more years.) I need the lump sum for other things!
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    (Original post by julifoo)
    Brilliant, I was worried that the SLC would claim all the loan from my private pension lump sum next year (especially since I will not qualify for the state pension for a few more years.) I need the lump sum for other things!
    Ordinarily, I'd always advise that if you have commercial unsecured debt and savings you'd use the savings to pay down the debt because the interest you'd pay on the debt vastly outweighs that which you'd receive on an equivalent amount of savings. For student loan debt, because it is subsidised it's not so clear cut, though with an uptick in inflation (and therefore interest) expected, paying down student loan debt with savings becomes more of a financially savvy move. In your situation though you've clearly earmarked the lump sum so this isn't relevant!
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    (Original post by julifoo)
    I understand that the loan repayments are taken from your salary but if you are not working can the SLC treat lump sums such as inheritances, lotto wins and a pension lump sum as income and demand payments? These lump sums would be non-taxable.
    Do you have earned income? And if you are entitled to a pension lump sum presumably you are over 55?

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    (Original post by jneill)
    Do you have earned income? And if you are entitled to a pension lump sum presumably you are over 55?

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    Yes I am 60 next year and since the gov robbed me of 6 years of state pension I am hoping never to pay my student loan back - it gets wiped off when I am 65.
    Sorry if this statement shocks anybody!
 
 
 
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