For university students, paying off your student loan is one of those annoying but inevitable expenses that come out of your bank account every month. But according to MoneySavingExpert, more than 100,000 graduates have begun paying off their loans early in the last three years and may be eligible to claim hundreds of pounds.
It is like that because college leavers (including new graduates or someone who has left the university halfway through their studies) do not have to pay off their loan until April after they leave the university – even if you earn more than the £ 25,000 / yr threshold in that period.
How do you know if you have to pay a student loan?
For example, if you graduate in June 2018? Money should not start leaving your account to pay off your student loan until April 2019, regardless of what you earn or that you have a full-time job at that time. MSE says the Freedom of Information Act reveals that more than 103,290 university leavers have started unintentionally repaying their loans earlier than they needed, usually to an administrative error by the borrower or their employer, rather than the student loan company. In order to be eligible to pay your student loan, if you have started in or after 2012 in Eng of Wales, it is £ 21,000 / year, rising to £ 25,000 / year in April 2018. Please note that or you are paid weekly or monthly is crucial. If you started between 1998 and 2012 and come from Scotland or Northern Ireland, the threshold is £ 17,775 / year, but this has changed every year since 2012. Again, how often you were paid is crucial.
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How high is the discount on student loans?
The student loan company has paid back £ 729,000 to 2,190 people, an average of £ 333 per claim, but how much your discount is worth depends of course on your annual salary, how quickly you got a job after leaving college and how quickly payments have been wrongly removed from your account.
How to recover early student loans
First of all, you must decide whether you will receive a discount. When did you leave your university? When did you start earning £ 25,000 + per year? When did you start paying back your student loan? If the answer to the last question is before April, the year following your university, collect your payslips as proof of student loans, your wage number and PAYE (pay if you earn) reference number, and call the Student Loan Company on 0300 100 0611. Martin Lewis says that although you may think that paying your student loan early is a good thing, because it means you take a lead on the game, the reality is that many students never fully pay the loan, making it early getting up becomes pointless. "With interest rates for those who started uni in or after 2012 to 6.1%, some may assume that starting with early repayments is a blessing," he explains. "However, statistics show that the vast majority (more than 80%) of these university leavers are unlikely to fully release their loan in the 30 years before it is cleared, meaning that extending the repayment period by starting early will only result in unnecessary payments. So get the money back. & # 39;
Is there anything better than getting money back that you did not even know you deserved?