Compare paying student loans directly to SLC versus waiting for Self Assessment. Discover how much interest you can save with immediate voluntary payments.
Interest Savings: £88 by paying SLC directly
Time Difference: 458 days faster processing
Paying SLC directly saves interest costs compared to waiting for Self Assessment processing.
Annual rate: 7.0%
Underpayment: £440
| Feature | SLC Voluntary | Self Assessment |
|---|---|---|
| Timing | Anytime | 31 Jan only |
| Processing | 5 days | 2-4 weeks |
| Interest Savings | Immediate | Delayed |
| Flexibility | High | Low |
| Frequency | Multiple times | Once annually |
| Refund Option | Yes (timeframe) | Complex |
| Legal Requirement | Optional | Mandatory if underpaid |
You owe money due to PAYE not covering full liability
Website: slc.co.uk (log in to your account)
Payment Methods: Debit card, bank transfer
Processing: 5 working days
Confirmation: Email notification
Reference: Use your customer reference number
File Return: Online by 31 January
Payment: HMRC gateway or bank transfer
Processing: 2-4 weeks via HMRC
Deadline: 31 January (midnight)
Late Penalty: 5% if missed
If you owe money via Self Assessment:
Pay SLC voluntarily as soon as you know the amount, then file your SA return showing the payment was made. This saves £88 in interest while still fulfilling your legal obligations.
For voluntary overpayments:
Always use SLC voluntary payments. There's no benefit to using the Self Assessment route for optional payments, and you lose flexibility and pay more interest.
Planning ahead:
If you know you'll owe money next year, consider making regular voluntary payments throughout the year rather than waiting for the SA deadline.
Save money by paying directly to SLC rather than waiting for Self Assessment processing. Every day counts when it comes to interest savings.