Hi,

If someone pays off her student loan in one lump sum, how long is it
likely to take for her employer to be told by HMRC to stop deducting SL
repayments from monthly salary?

In other words, how many months-worth of repayments should *not* be paid
off?

(Obviously, paying-off is not sensible during the zero-interest period.)

Many thanks.


--
Martin

On Sat, 6 Feb 2010 13:33:02 -0000, "Martin"
wrote:

Hi,

If someone pays off her student loan in one lump sum, how long is it
likely to take for her employer to be told by HMRC to stop deducting SL
repayments from monthly salary?

In other words, how many months-worth of repayments should *not* be paid
off?

(Obviously, paying-off is not sensible during the zero-interest period.)

Many thanks.

I don't think anybody knows. This is another example of things not
being thought through when the system was set up.

In article ,
says...

Hi,

If someone pays off her student loan in one lump sum, how long is it
likely to take for her employer to be told by HMRC to stop deducting SL
repayments from monthly salary?

In other words, how many months-worth of repayments should *not* be paid
off?

(Obviously, paying-off is not sensible during the zero-interest period.)

Many thanks.

There must surely be a method in place whereby employers are told to
stop collecting when the debt has been paid otherwise everyone will be
over paying?

Is the answer therefore to pay off it all save for the last three or
four months worth of payments and then the system that already exists
will notice the debt is complete and will send a cancel request. The
fact you have paid a lump sum would then be neither here nor there.

"Yellow" wrote in message
...
In article ,
says...

Hi,

If someone pays off her student loan in one lump sum, how long is it
likely to take for her employer to be told by HMRC to stop deducting SL
repayments from monthly salary?

In other words, how many months-worth of repayments should *not* be paid
off?

(Obviously, paying-off is not sensible during the zero-interest period.)

Many thanks.

There must surely be a method in place whereby employers are told to
stop collecting when the debt has been paid otherwise everyone will be
over paying?

Is the answer therefore to pay off it all save for the last three or
four months worth of payments and then the system that already exists
will notice the debt is complete and will send a cancel request. The
fact you have paid a lump sum would then be neither here nor there.

Thanks, Yellow.

I assume "the system" would only trigger a "stop deductions" notice once the
loan was fully repaid. I can't imagine it predicting that moment - even if
payments didn't vary.

However, since posting, I have found this (apologies if link wraps) ....
http://www.studentguardian.co.uk/ind...oney&Itemid=70

.... which suggests the system is a mess, and you need to write to SLC
promptly when paying-off, whether in a lump sum or through regular
deductions.

Thanks again for the replies.

--
Martin

Yellow wrote:

There must surely be a method in place whereby employers are told to
stop collecting when the debt has been paid otherwise everyone will be
over paying?

Is the answer therefore to pay off it all save for the last three or
four months worth of payments and then the system that already exists
will notice the debt is complete and will send a cancel request. The
fact you have paid a lump sum would then be neither here nor there.

The Student Loan Company don't even know what repayments they have received
until they receive their copy of the details HMRC get from the end of year
payroll returns. It generally takes HMRC until about August to process
these, then they can pass them to SLC and SLC can do their processing.

I would suggest that anyone who has a Student Loan keeps very careful
records of what they have paid, and how much interest should have been
charged on the remaining about, because the way the system is set up, the
Student Loan Company has no more than a random chance of getting this
right.

In article ,
says...

"Yellow" wrote in message
...
In article ,
says...

Hi,

If someone pays off her student loan in one lump sum, how long is it
likely to take for her employer to be told by HMRC to stop deducting SL
repayments from monthly salary?

In other words, how many months-worth of repayments should *not* be paid
off?

(Obviously, paying-off is not sensible during the zero-interest period.)

Many thanks.

There must surely be a method in place whereby employers are told to
stop collecting when the debt has been paid otherwise everyone will be
over paying?

Is the answer therefore to pay off it all save for the last three or
four months worth of payments and then the system that already exists
will notice the debt is complete and will send a cancel request. The
fact you have paid a lump sum would then be neither here nor there.

Thanks, Yellow.

I assume "the system" would only trigger a "stop deductions" notice once the
loan was fully repaid. I can't imagine it predicting that moment - even if
payments didn't vary.

However, since posting, I have found this (apologies if link wraps) ....
http://www.studentguardian.co.uk/ind...oney&Itemid=70

... which suggests the system is a mess, and you need to write to SLC
promptly when paying-off, whether in a lump sum or through regular
deductions.

Thanks again for the replies.

Hope it all works out for you!