Money Saving Expert Martin Lewis reveals secret hack to get student loan money back

March 13, 2018
By founder Martin Lewis has set his money saving sights on the thousands of young people who are still paying off student loans.

Speaking to Holly and Phil on Monday’s This Morning, the solvency guru revealed a little-known hack which could spark refunds worth hundreds of pounds.

According to the Mirror , he says it all depends when you first started making repayments.

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Have you started repaying too early?

“This applies to anyone who started university from 1998,” Martin said.

“You’re only eligible to start repaying your student loan in the April after graduation – often around nine months after leaving.

“In that April you repay 9% of everything you earn over £21,000, but none of that really matters – if you started paying before the April, you shouldn’t [have] and you’re entitled to get that money back.

“The problem is employees start repaying automatically through the payroll, like tax.

“So if your employer has the wrong info about your uni leaving date, or simply does it wrong, you may have started repaying early.”

He then shared details of viewer stories – one woman who got a refund of £1,100 and a man who received £300.

“In a perfect world you’d check your payslips, then call up the Student Loan Company with your national insurance number, payroll number and PAYE reference,” he said.

“But if you don’t have these details you can still call the Student Loan Company and ask them to check – although they’ll hate me for saying that,” he joked.

Martin then revealed that numerous people could still be paying off their loan – even if they’ve levelled their debt.

(Image: PA)

Have you overpaid?

“A huge 86,000 overpaid this way in 2015/16 alone,” he said.

“This happens because the Student Loans Company only gets told by HMRC how much you’ve paid once a year.”

Martin added: “As a result, people who’ve finished paying off their loans can still have money deducted up to a year later – this is due to change from 2019.

“It will write and tell you if this has happened, but that takes time, if you think you’re impacted call it and speak to it.”

He then also urged people who are in the final two years of repayments to switch their installments from PAYE to direct debit.

“This way, when you pay the last remaining amount it stops automatically – and you won’t have to wait to reclaim it,” he added.

Is it better to pay off loans quicker?

Not necessarily – Martin said: “The majority of university leavers – just over 80% – who started uni in or after 2012 won’t clear their full loan plus interest in full in the 30 years before it’s wiped anyway.

“So for you, extending the repayment time by starting early will simply mean paying more unnecessarily. So get the money back.”

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