Student Loan - Direct debit

[Lalila22]

I got a letter to say I can move to direct debit. Currently I am paying £180 but direct debit is £196. I have one year and 10 months left. I have calculated and will be over paying £646! Is this normal?! Has anyone been in this situation? Why can’t I just pay the £180 as direct debit?? Even then its £200 overpay :/

Have you accounted for interest on the loan?

You won't end up overpaying, they'll adjust the amount as you go along or it could be to take into account an expected pay rise some time over the next year.

They offer it like this because otherwise you're at risk of paying too much if the payments from your salary don't stop in time.

@Winter2020 oh gosh. I forgot about that. Is interest not included in the balance? But if I continue paying through work its £180. Why cant I have the same with direct debit?

@Bjorkdidit thank you. I just feel £180 is better than £196 to pay off.