paying back student loan

**lance4k** · 10-11-2009, 01:24 PM

Once you finish your course how do you pay back your student loan? the ird website says they 'collect payment' from you. How do they do this? Do they send you a bill or do they automatically deduct the loan payment each month from your back account?

**Speedy Gonzales** · 10-11-2009, 01:26 PM

Ring them

**Cato** · 10-11-2009, 01:31 PM

They deduct money from whoever pays you. Different tax code and all.

I didn't know that, I worked and worked and half way through they started deducting money from my employer and at the end of the year they told me I had to pay even more back. (I was still studying, losing 100ish per week is not fun)

**Cato** · 10-11-2009, 01:38 PM

You got PM.

**utopian201** · 10-11-2009, 02:13 PM

Your employer takes it out of your pay (10% of every dollar earned above $17k if I remember correctly).
If you end up earning more, you have extra to pay at the end of the year. If you pay too much, you can get a refund.

**beeswax34** · 10-11-2009, 04:07 PM

After you start earning over a certain threshold, your employer is notified in order to get your tax code changed (you'll be informed too) and then each week, a certain percentage of your pay will be deducted after PAYE in order to pay back the loan.

You can of course make voluntary repayments and as someone said before, if you do end up paying too much then you can also claim a refund.

**Nomad** · 10-11-2009, 05:04 PM

Most people use a tax code of M.
Many people with student loans use M SL. The employer deducts money off your pay and gives it to IRD.

At the end of each financial year you can ask for an assessment, if you paid too much you get a refund, if you pay too less they ask you to pay it. Like if you have a student loan but used a M code.

IRD can also request at anytime should they have reasons to believe you are paying less what you ought to.