Do I need to cancel my Student Loan direct debit now it's paid off?

[PirateDays]

I have FINALLY paid off my Student Loan🍾

I switched to the direct debit method a year or so ago as they advised me to to avoid overpayment, which is apparently common with the PAYE method.

Does anyone know if it just stops by itself once the amount is paid, or whether I need to cancel it myself? I don't want to cancel the DD to find out there's a tiny amount left which they were planning to take, but equally don't want them to take the full payment in error.

Cancel it! As long as you’ve got document that it’s paid off.

Hmm I haven't received anything from them - and didn't know whether I should expect to? - which is partially why I am reluctant to cancel it.

I logged into my account after the last payment I made and it showed a balance of about £60, which is less than half the DD amount, but this was dated from before the most recent payment, so I assume it's paid off now - but I haven't had any official communication from them.

Cancel the direct debit and call them to pay anything oustanding

If it’s a DD, you’ll have to cancel, as the bank will just keep paying the amount as instructed on the due date afaik. Make sure you do it in plenty of time before the next payment’s due, though.

If you still owe anything, student finance will get in touch pretty quickly if the DD has been cancelled and they can’t get hold of their money! You can then do a bank transfer for the remaining debt, if any.

Congrats on paying it off, btw!

Congrats! I can imagine what a relief it is to get to this point…but yes get in touch with the company & get them to sort out sort out any lose ends.

Absolutely cancel it - they will have almost ceraimkg taken the full amount and will now owe you £70. Standard advice is to cancel DD before last payment and ring to pay the balance as they are notorious for this.

Cancel it. If there is any small amount outstanding they will let you know and you can then just phone them to pay it.

I'd cancel it because past experience of Student Finance England tells me that I couldn't trust them as an organisation any further than I could throw them.

DD’s have to be claimed by a supplier so in theory they should not claim it. Certainly my DD’s have always ended on the due date. Cancelling it is just a precaution I think.

That’s a standing order. For a direct debit the company ‘calls’ on your account for the amount due.

Definitely cancel it, it may take a while for student loans to update their file and not request the money from you.

Congratulations! I’m counting down to my last payment - 2 more to go!

You are thinking of a standing order. That is paid automatically by the bank at whatever intervals you set up, weekly, monthly, yearly etc. and for however long you instruct them to do it.

Direct debits are not the same. They are a mandate set up to allow a claimant to request a payment from the account for the instalments for certain loans or services rendered. They rely on the claimant requesting the payment, it isn't automatic.

So, in theory, once a loan has been completely paid off then there should be no further demands from the claimant. In practice though, it is good housekeeping (and advisable) to cancel the mandate to avoid the possibility of its continued use in error.

I stand corrected!
I suppose I’ve always cancelled DDs, as I was never really sure whose responsibility it was to shut them down, but assumed it was mine, so thought I’d be proactive!

Mine ended this year (what a feeling eh!!) and I didn’t do anything. It just ended.