LITRG offers advice on student loan repayments

Tuesday, April 27th 2010

Former students who are confused over finances and when they are due to pay back loans may be interested in an explanation from the Low Income Tax Reforms Group (LITRG).

The body explains repayments will be made via employers, unless the person is self-employed.

Those who earn over £15,000 a year and took out the income-contingent loan will have to make repayment, administered by the Student Loans Company.

And the payments are collected at a rate of nine per cent for all earnings over the threshold.

Those who have almost repaid the full amount of their balance could consider opting out of the normal system to avoid overpaying.

Direct debit payments could be an option in this case, the LITRG explains.

Established in 1998, the body initially aimed to help taxpayers who cannot afford to pay for tax advice.

Such people often had to rely on information they could get from the media, the LITRG notes.