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PGL - How to prevent paying more than you owe


Why would I pay back more than I owe?

Currently HM Revenue & Customs notifies us once a year, after the end of the tax year, of how much you have repaid towards your student loan through the tax system.

This means that we can only monitor your outstanding balance on an annual basis, rather than monthly. For that reason, it is likely you could repay more than is outstanding on your loan.

How can this be prevented?

In order to prevent you from paying back more than you owe, we provide an alternative way for you to make student loan repayments.

As you approach the end of your repayment term, we will give you the option to change the way you make your repayments. Rather than having an amount deducted from your salary each pay period, you will be able to make your student loan repayments by monthly direct debit.

What is the benefit of repaying by Direct Debit?

By making repayments monthly by direct debit, we will be able to calculate exactly when you are due to repay your loan in full then make sure your repayments stop at that point. This is something we are unable to do if you make repayments through the tax system.

This means:

  • We can stop your payments at exactly the right time.
  • You can be completely confident that you have paid your loan in full.
  • You will not have to apply, and wait, for a refund of any extra payments you might have made.

How can I start repaying my loan by direct debit?

After the end of the tax year, HMRC let us know how much you’ve repaid through the tax system for that financial year. As we only receive this annually, it’s likely you’ll repay more than you owe. To prevent this, pay particular attention to your repayments so you can:

  • switch to repaying by direct debit (available if you’re expected to finish repaying within 4 to 23 months)
  • request a settlement figure to pay off your loan in full (you can do this at anytime)

To do either contact us on: 0300 100 0611 (Mon to Fri 8am – 8pm or Sat 9am – 4pm) Or if you’re overseas: +44 141 243 3660. If you live in Wales call us on: 0300 100 0370 (Mon - Fri 8am - 6pm).

What if I still have more than two years of repayment to go?

You will not be able to switch to making repayments by direct debit until your current level of repayment through your salary shows that you will repay your loan within the next two years.

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