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Thread: Student loans - repaying back too much

  1. #1

    Student loans - repaying back too much

    In the last financial year I earnt 18,847.97 thus taking me over the threshold of 17450 to pay back my student loan.
    I would have been due to pay back 122 on the amount I earnt this year but due to having 2 months where I did a lot of overtime I have ended up paying 329 but the student loans company are saying they are entitled to keep the overpayment as I went over the threshold to start paying back my loan.
    Is this right? I can't find anything in my original agreement about it and it's frustrating as it means I suffer as some months I may only recieve 900 before tax from work but then if I can get overtime I can earn 1800 before tax so I feel if I am being penalised for not having a stable income month on month as if I did I would have only paid 122 over the year rather than 329!

  2. #2
    I'm not 100% certain on this so I will double check tomorrow at work, but I believe that SLC will only refund overpaid deductions if you didn't meet the repayment threshold during the year (or if you've paid off the balance of your loan).

    Once your annual earnings go over the threshold then the deductions which have been made stand, even if they're higher than they would be if you calculated the amount due based on annual earnings rather than based on individual months.

    I can see why you're annoyed, it's an imperfect system.

  3. #3
    Yes it almost puts me off doing any extra overtime in work as after tax and student finance I come out no better off sadly.

  4. #4
    You have less debt, so you are better off

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