Student Loan Deferment

**TheMonkey** · 4 June 2006, 09:23

I tend to just fire myself regularly (between contracts). I haven't had to pay anything back since March last year.

Ironically I want to pay it off but it's inconvenient the way that they collect it.

**thunderlizard** · 4 June 2006, 17:17

Yes. It was an old-style student loan. I don't know if that matters. My salary was set a few quid below the deferral limit for that very reason.

**daisygrl** · 26 July 2007, 18:10

Student Loan

You should consider consolidating your student loan to lower the payments if thats the issue. It helped me lower my payments and get my finances in order. If you need any help consolidating try google.com or let me know.

**chris79** · 26 July 2007, 19:33

dont consolidate your student loan, it only charges an interest rate of like 2 or 3%, you won't get a private loan this cheap...

I pay myself a directors wage and dividends, and I've not paid any student loan repayments since I started my own limited company.

**TheFaQQer** · 26 July 2007, 21:14

Originally posted by chris79

dont consolidate your student loan, it only charges an interest rate of like 2 or 3%, you won't get a private loan this cheap...

I pay myself a directors wage and dividends, and I've not paid any student loan repayments since I started my own limited company.

Be careful - if you have income (not salary) over the threshold, then you should be paying it back. This includes income from dividends - if you are taking more than the limit (£15k?) then you need to start paying it back.

**RSoles** · 28 July 2007, 10:55

Now that's interesting.
I asked just this question of my accountants (SJD) because my wife (company shareholder) has an outstanding student loan.

They told me it was salary which was important rather than income from (say) dividends.

RS

**chris79** · 28 July 2007, 13:09

I thought the repayment was only linked to PAYE, as dividend income is not guaranteed?

**ASB** · 28 July 2007, 15:06

Originally posted by chris79

I thought the repayment was only linked to PAYE, as dividend income is not guaranteed?

dividends count. In those circumstances it should be calculated through the self assessment form.

**TheFaQQer** · 28 July 2007, 20:36

Originally posted by chris79

I thought the repayment was only linked to PAYE, as dividend income is not guaranteed?

Originally posted by RSoles

I asked just this question of my accountants (SJD) because my wife (company shareholder) has an outstanding student loan.

They told me it was salary which was important rather than income from (say) dividends.

Seems like SJD are mistaken here. This is what the Student Finance website has to say about it, if you pay tax via self assessment and PAYE:

If you are self employed but also work as an employee, are subject to tax at a higher rate or have unearned income from stocks, shares and savings or other sources, you will be required to calculate any student loan repayments due through Self Assessment in addition to any repayments which are deducted through PAYE.

This is the same whether it is an old- or new-style loan. The only difference is how they calculate how much needs to be repaid.

You need to start paying, if you are over the threshold, which is currently £15000 pa.

More information can be found here for old loans, or here for new loans.

Student Loan Deferment