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Not Working Student Loan Repayments

Satellite JohnSatellite John Posts: 1,881
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in Advice #1
I am thinking of giving up work, I would not be receiving benefits, but looking after children and my wife would be the earner of the household.
I am just wondering if anybody has first hand experience of the Student Loans Company in this situation? Do they hassle you for repayment, or is a simple letter from my wife enough to keep them at bay?
Thanks for any help.

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  • Tumble weedTumble weed Posts: 8,200
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    #2
    I graduated in 2009 and have probably paid off £50/100 of it back... in that time I've incurred about £300 extra in interest... and they've raised the repayments from after you start earning £15,000 a year to £20,000 a year (I believe) and I only make £16/17,000 a year anyway but that's from 2 jobs and I believe you have to earn that from one job anyway??

    Either way , haven't made any contributions to it in years and all I get is a letter now and again giving me a breakdown of how much is left to pay.
  • Tumble weedTumble weed Posts: 8,200
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    #3
    I wouldn't worry about it anyway, it's all taken off your earnings automatically and doesn't affect your credit or anything, I should know, just bought a house a few months ago.
  • [Deleted User][Deleted User] Posts: 408
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    #4
    To the best of my knowledge you don't need to do anything unless you return to work self employed. When you are employed, you make contributions through PAYE (which deducts student loan automatically). However, i believe that if you are self employed, you have to make payments somehow.

    No letter or notification is required as Revenue and Customs should deal with aurtomatically.
  • mred2000mred2000 Posts: 10,050
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    #5
    The above posters might be on a different form of SLC so it probably depends on when you took out the loan. I took mine out 97-00 and have to prove income every year if I want to halt payments, payments back to them come out of my account, not PAYE. In this case being self employed means showing them a tax return summary for income or letter from employer on headed paper. I'm not sure a letter from your wife would cut it, or we could all try it :D
    Probably best to just give them a call.
  • elliecatelliecat Posts: 9,890
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    #6
    HMRC will notify the SLC that you are no longer employed and they will then send you a customer details pack asking for details of your circumstances. It's all on their website

    http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678571&_dad=portal&_schema=PORTAL



    Tumble weed wrote: »
    I graduated in 2009 and have probably paid off £50/100 of it back... in that time I've incurred about £300 extra in interest... and they've raised the repayments from after you start earning £15,000 a year to £20,000 a year (I believe) and I only make £16/17,000 a year anyway but that's from 2 jobs and I believe you have to earn that from one job anyway??

    Either way , haven't made any contributions to it in years and all I get is a letter now and again giving me a breakdown of how much is left to pay.

    If you graduated in 2009 you would start paying your loan back at 9% when you earn above £16,365 before tax per year. The £20,000 is for the newer style loans they didn't change it for the older loans.
  • mred2000mred2000 Posts: 10,050
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    #7
    elliecat wrote: »
    HMRC will notify the SLC that you are no longer employed and they will then send you a customer details pack asking for details of your circumstances. It's all on their website

    http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678571&_dad=portal&_schema=PORTAL

    If you graduated in 2009 you would start paying your loan back at 9% when you earn above £16,365 before tax per year. The £20,000 is for the newer style loans they didn't change it for the older loans.

    Again, it depends when the OP took out their loan. In my case the HMRC don't notify the SLC of anything and my repayments kick in at about 22-23k...
  • GogfumbleGogfumble Posts: 22,155
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    #8
    mred2000 wrote: »
    The above posters might be on a different form of SLC so it probably depends on when you took out the loan. I took mine out 97-00 and have to prove income every year if I want to halt payments, payments back to them come out of my account, not PAYE. In this case being self employed means showing them a tax return summary for income or letter from employer on headed paper. I'm not sure a letter from your wife would cut it, or we could all try it :D
    Probably best to just give them a call.

    I took mine out starting in 98 and don't have to prove my income. I just get the yearly statement. It is different because you are self employed, of course you have to prove your earnings. For someone just not working they don't have to prove anything.
  • mred2000mred2000 Posts: 10,050
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    #9
    Gogfumble wrote: »
    I took mine out starting in 98 and don't have to prove my income. I just get the yearly statement. It is different because you are self employed, of course you have to prove your earnings. For someone just not working they don't have to prove anything.

    Things had already changed between '97 and '98... Mine was the last year to not pay tuition fees, for starters. Enough of the 1st years were complaining about the changes when I was in my 2nd year, anyway... even more so when I hit the 3rd year...

    When I wasn't earning enough I had to prove that every year with either 3 months worth of payslips or a letter from my employer, when I was paying it I did nothing (payments always came out of my bank account - not my payslip), when I was unemployed I had to prove that myself and now I'm self employed, yes, I have to give them my tax return summary every year.
  • Satellite JohnSatellite John Posts: 1,881
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    #10
    My loan was taken from 2001 to 2004. Thanks for the replies.
  • elliecatelliecat Posts: 9,890
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    #11
    Satellite John wrote: »
    I am thinking of giving up work, I would not be receiving benefits, but looking after children and my wife would be the earner of the household.
    I am just wondering if anybody has first hand experience of the Student Loans Company in this situation? Do they hassle you for repayment, or is a simple letter from my wife enough to keep them at bay?
    Thanks for any help.

    If you are being supported by your wife when they send you the "Confirmation of Customer Details pack" you will need to send a letter from your wife saying that she is supporting you. Have a look at their frequently asked questions bit on the SLC website as it's all there.
  • Sansa_SnowSansa_Snow Posts: 1,217
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    #12
    Hi, I have reanimated this old thread - is anyone in this situation?...
    I have received the letter from Student Loans asking me to prove my employment status. I am not working as I look after my child, my husband works and we have a joint account. The letter says to send 3 months of bank statements and that this has to be done every year. I'm not too sure which bits of the statements are relevant, I don't want to send them all the transactions. Part of me is thinking it's none of their business! What would happen if my husband was giving me cash for spending money?!
  • RoushRoush Posts: 4,368
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    #13
    edit: the post immediately above yours answers your question.

    You are being supported by a third party - your husband.

    Is it a Confirmation of Customer Details pack that you have received? If so there should be a section of the form to fill in for this. Send it back with the requested documentation (i.e. bank statements).
  • Sansa_SnowSansa_Snow Posts: 1,217
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    #14
    Roush wrote: »
    edit: the post immediately above yours answers your question.

    You are being supported by a third party - your husband.

    Is it a Confirmation of Customer Details pack that you have received? If so there should be a section of the form to fill in for this. Send it back with the requested documentation (i.e. bank statements).

    I know that bit thanks, I was hoping for a bit more clarification on what they need to see of the bank statements, there is no 'income' as such it is an account that my husband tops up now and again. I don't want to send all the account transactions, only what is relevant. (I am not sure how it proves I am not working as there are many ways around that!). I will give them a ring.
  • ChrisHayChrisHay Posts: 206
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    #15
    Sansa_Snow wrote: »
    Hi, I have reanimated this old thread - is anyone in this situation?...
    I have received the letter from Student Loans asking me to prove my employment status. I am not working as I look after my child, my husband works and we have a joint account. The letter says to send 3 months of bank statements and that this has to be done every year. I'm not too sure which bits of the statements are relevant, I don't want to send them all the transactions. Part of me is thinking it's none of their business! What would happen if my husband was giving me cash for spending money?!

    Open a bank account in your name only and send them statements from that account!
  • [Deleted User][Deleted User] Posts: 1,163
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    #16
    Satellite John wrote: »
    I am thinking of giving up work, I would not be receiving benefits, but looking after children and my wife would be the earner of the household.
    I am just wondering if anybody has first hand experience of the Student Loans Company in this situation? Do they hassle you for repayment, or is a simple letter from my wife enough to keep them at bay?
    Thanks for any help.

    My husband wrote the letter at the time stating he was my husband and supporting me and my daughter at the time and I haven't heard anything since.
  • Sansa_SnowSansa_Snow Posts: 1,217
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    #17
    ChrisHay wrote: »
    Open a bank account in your name only and send them statements from that account!

    I do have an account of my own but there are no incomings and outgoings since I stopped work, I still could do with knowing what they need to see for example would just the balance of the account suffice? I am intending to ring them (when I can be bothered haha!)
  • Sansa_SnowSansa_Snow Posts: 1,217
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    #18
    SupernovaNebula wrote: »
    My husband wrote the letter at the time stating he was my husband and supporting me and my daughter at the time and I haven't heard anything since.

    This is what I think is reasonable, hoping I don't have to faff with accounts and statements as it seems a bit pointless!
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