Problem with student loan repayments

[LemonTwist]

I took out a student loan for the academic years 2002-2003 and 2003-2004. I graduated in the summer of 2005 and I started working full time. My student loan was due to enter repayment status in April 2006, but my income at that time was lower than the £15,000pa threshold, so I didn't have to repay anything.

However, I moved to a new job in a different department (still within the same company) just over a year ago and I'm now above the threshold, but still no deductions are being made from my salary. This is starting to concern me, as I wouldn't want anyone to think I was avoiding the repayments on purpose.

I emailed my HR department a few days ago and they just wrote back saying I need to contact the Student Loans Company and ask them to send a notification to our payroll department. However, I'm surprised that I should have to do this. Is it correct or does the person in HR not know what they're talking about?
The documentation the SLC sent me after graduation said that the deductions should start automatically when my salary exceeds £15,000 - it is the SLC's job to notify HMRC, who should in turn notify the graduate's employer and ask them to make the deductions through the pay as you earn system.

What should I do about this?

[getz21]

Hi,
In a similarly bizarre situation, just can't get them to take any money off me. Contacted SLC who said employer had to inform them of anyone that needed to pay when i started there. Employer says they told them and up to them to arrange it. Since moved to new employer and still no sign of SLC. Graduated 2005, no repayments, no letters, no statements in this time.
Discussing with a friend who has also failed to get any repayments deducted. She worked as economist for dept. of education where it was apparently well known that SLC was a shambles and around a third of accounts had been lost. Although i think this is wildly exagerrated i personally know of at another 5 people not making repayments. Surely nationwide this is a huge amount of debt that's lost and apparently covered up by SLC.
So... what do we do? Leave it up to them to find us? Harrass them to take my money? If they do eventually find me do i still have to pay the interest even though i've been willing and able to pay since 2005? Is there a time limit on how long they can wait before calling in this debt?

[LemonTwist]

Thanks for your reply. I don't think the SLC has "lost" my account, as I still get sent statements every year - the most recent one was dated December 2007. It's shocking though if it's true that they've lost a third of all the accounts.,

It's difficult to solve this problem as I don't know whose fault it is - it could be my employer's payroll/HR department, it could be the SLC or the HMRC. It's difficult to know where to start.

[master woody]

If it were me i'd send a letter recorded delivery to the Collections Manager explaining the situation. If then they still don't do anything don't pay. Ok your loan is going up by inflation, so staying the same in real terms. Your personal wage inflation will be a lot higher. If you can afford the repayments. Pay it into a high interest account 8% and keep the difference in the interest?

[master woody]

made a post on the wrong forum oppps

[BeauBrummie]

Originally Posted by LemonTwist

Thanks for your reply. I don't think the SLC has "lost" my account, as I still get sent statements every year - the most recent one was dated December 2007. It's shocking though if it's true that they've lost a third of all the accounts.,

It's difficult to solve this problem as I don't know whose fault it is - it could be my employer's payroll/HR department, it could be the SLC or the HMRC. It's difficult to know where to start.

My understanding of the student loan scheme repayment trigger, is that the employer would receive a "Start SL deductions" notice from HMRC, beginning on a particular date. So it must therefore be the students responsibilty to inform HMRC either personally or by way of contacting the Loan Company re the change in circumstances.

HMRC would eventually catch up with the student anyway, by virtue of the employer sending in its year end returns every May.

An employer is guided by the information it is given from either the employee initially or later by HMRC notices, so it cannot be the "HR" depts fault, unless they blatantly do not act on information given. That being said an employer cannot legally deduct student loans payments on the say so of the employee that the loan refers to.

BB

[special_k]

any update?

I am in a similar situation, I graduated in 2005

[LemonTwist]

Originally Posted by special_k

any update?

I am in a similar situation, I graduated in 2005

I haven't actually done anything about this yet. A few days ago I received my annual statement from the SLC. It states how much interest has been added in the last 12 months, although no payments have been deducted from my wages. There was a leaflet included with the statement, and it says that employers send their figures to the HMRC each June, so it may just be that it wasn't captured in the latest return.