3

I'd like to preface this by saying that if I am legally required to pay the higher amount, then of course I will. But as any human (presumably), I would prefer to pay less.

I am also on Plan 1 for repayment.

I recently moved to Canada and have just started working with a salary of $120,900 CAD. From that, I used the following math to work out how much I'd likely be paying each month (If my math is wrong, which is entirely possible, please correct me), I left off pence/cent amounts for readability, so some numbers will be off by the odd pound/dollar:

Threshold for Canada(GBP): £18,935.00

Equivalent (CAD) @ 0.576222: $32860

(Equivalency can be found here: https://www.gov.uk/government/publications/overseas-earnings-thresholds-for-plan-1-student-loans/overseas-earnings-thresholds-for-plan-1-student-loans-2019-20)

Total yearly income (CAD): $120,900

Total minus threshold (CAD): $88,040

9% of above (CAD): $7,923

Monthly repayment (CAD): $660

Total monthly charge for not providing information (GBP): £246

Equivalent (CAD) @ 0.576222: $426.90

Given that the default monthly repayment charge is significantly less than my projected payment amount, am I able to simply pay the lower amount?

  • Interesting question. I noticed that with Plan 2, that might result in higher interest rates for you, but Plan 1 is fixed for everyone. Elsewhere, it does say "must keep us updated with employment details..." but I don't know if it is legally binding. Even if it isn't legally binding, they'll keep on sending letters to you which is annoying. – gktscrk Mar 11 at 19:31
  • It's a strange situation to be in. I certainly want to pay, I've been paying my student loans each month for the last 7 years (only have ~5k left to pay now). But my car insurance over here each month could be covered by the difference in amounts. I think I'll probably call SLC tomorrow anonymously and see what they say. – Adam Thomason Mar 11 at 20:45
  • To be fair, if you've got that little left to pay, I'd probably aim to get it all cleared away. You can feasibly do this within a short time. Though it is not technically necessary, it would make your life admin a lot easier. SLC must be the worst organization to talk to. – gktscrk Mar 11 at 20:54
  • 1
    They're certainly a pain to speak to. My partner hasn't found work yet, and so we had to jump through hoops to prove she didn't have any income! – Adam Thomason Mar 11 at 21:05

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