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<p> </p><p>It is possible for borrowers with Income Contingent Repayment (ICR) loans
nearing the end of their repayment term to over-repay their loans because there is
a time lag between the deductions from borrowers pay (by employers), HMRC's annual
process for student loan repayment accounting and the student loans Company (SLC)
subsequently receiving payment information from HMRC. As a consequence it is possible
for people to over repay before the SLC becomes aware that their repayments should
stop.</p><p> </p><p>Because of this, SLC notifies borrowers in the final 23 months
of repayment that they may opt out of the PAYE system and complete their loan repayments
by Direct Debit (DD). This would ensure they do not over repay their loan. If borrowers
choose not take up DD repayment it is likely that they will over repay. Borrowers
are advised to monitor their own repayments. If they can demonstrate to SLC that they
have paid enough by providing evidence, such as payslips, SLC can then ask HMRC to
issue a "stop" notice to employers and refund any over repayments at the
earliest opportunity.</p><p> </p><p> </p><p>The SLC provides guidance and tools to
help borrowers calculate their loan balance and when they are likely to repay their
loan in full. The SLC refunds all over repayments to borrowers' bank accounts.</p><p>
</p><p> </p><p> </p>
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