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I, like most of the country, owe money back to the student loans company.
However, for the past few years have been able to defer it as I am on a low income.
The problem is that they had problems renewing my deferral last year as I had moved address and they had difficulty contacting me, despite the fact I had informed them of my change of address.
To cut a long story short, the loan was eventually deferred but only back to the date I contacted them and by this stage, a month had passed, so I owed a month's repayment, plus 3 letter charges @ £20 each.
An agreement was reached to pay off the month's repayment, but they refuse to take off the £60 of charges imposed by the collection agency used by the company.
They say that they are a not for profit agency administering government funds, and it is up to the defaulting customer to pay the costs of the letter, not the taxpayer to cover the costs of the defaulter. The penalties therefore reflect the extra cost required to administer the loan, and that the letters sent clearly stated that there would be a charge i.e. £20 each.
Finally they say that the charges do not attract interest.
I realise that the student loan accumulates little interest but surely it doesn't cost £20 to send a letter,especially when this was clearly a lack of communication andI have done my best to clear it up.
It seems a little rich that they are claiming to be not for profit and then charging you extortionate amounts for sending a letter!
They refer to you as a defaulter, yet you can not be in default unless liability to repay has arisen, as you are still entitled to defer you are not a defaulter.
They use the tax payer card to try to stop you claiming, yet the tax payer would be paying for their incompetence not your default.
The fact that SLC is a not for profit organisation may affect a claim based on the Unfair Contract Terms Act as this applies only to businesses. Although the common law relating to charging penalties for breach of contract would still apply. So go get em!
After replying to slcand telling them that although I qualified for deferral and was £80 in arrears, and a tax payer, not a defaulter, they agreed to remove the £60 of fees (3 letters) and so now I will clear them off asap and that will be one less thing to worry about!
In the meantime Capital One sent me statements that I requested without charging me for them, as did Abbey although it was only because I got the name and extension of a girl and hassled her until she sorted it. If you hear about an abbey customer from hell, it was probably me!!!
Slc- £60 - refunded
Welcome finance £1000 - refunded
Abbey - £4800 requested in 3 amounts since I am from N. Ireland
Capital one £887
still waiting on tmobile, black horse, ge capital, aktiv kapital and bank of ireland
I graduated in 1998 with three student loans ( the old-style ones which don't come straight out of your wages ) which I have yet to start paying back as I have always qualified for deferment. Does anyone know how long you can keep on deferring? I seem to remember an urban myth that after x years they would write off the loan???
My advice or opinion is offered in good faith but without prejudice or liability. It should not be considered as legal advice. If in doubt, seek advice from a qualified legal professional.
"Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure" - Marianne Williamson
Is that the one where if they've had no payment from you for 6 years then the debt is written off? Does it still count even if you could legally defer the payments according to the earning parameters they set???
My advice or opinion is offered in good faith but without prejudice or liability. It should not be considered as legal advice. If in doubt, seek advice from a qualified legal professional.
"Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure" - Marianne Williamson
The limitation period would start from when the cause of action arose ie when you are in default of a current debt. So by deferring this keeps the debt current and the six years would start to run from when you stopped paying (or failed to start paying) once the deferment had elapsed. Six years would then have to lapse without contact before the debt would be classed as statute barred.
I too have one of the old style loans and vaguely remember some provision for them being written off after a certain period but I can't remember what it was. The debtor reaching age 50/60? rings a bell but I really can't be sure.
My advice or opinion is offered in good faith but without prejudice or liability. It should not be considered as legal advice. If in doubt, seek advice from a qualified legal professional.
"Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure" - Marianne Williamson
Repayment can be deferred if you are earning less than 85 per cent of the national average wage but you must actively request this - it will not happen automatically if you are not earning more than that amount. Deferment can be requested if you are earning less than £1897 before tax per month (2004/05 figures; this should rise slightly in 2005/06). If you are not in arrears to the SLC, liability to repay these loans can be cancelled in certain situations:
·
if you reach the age of 50 (or 60 if you were aged 40 or more when you first took out a loan)
·
if you become permanently unfit for work due to a disability
·
if you die
·
if you have not otherwise paid back the full amount of your loan 25 years after repayments start Note that some of these loans were ‘sold’ to the Honours Student Loans Company (which is separate from the SLC) in the late 1990s, and their administration was transferred in 2004. However, the repayment rules as mentioned above should not be affected.
You were right about reaching 50.... I have still have a way to go before that so looks like I better start paying!
My advice or opinion is offered in good faith but without prejudice or liability. It should not be considered as legal advice. If in doubt, seek advice from a qualified legal professional.
"Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure" - Marianne Williamson
Isn't it just?? Anyone noticed how, as a student, you were always told that there were loads of grad jobs 'out there' and that your first salary would be around 18K and from then on, the sky's the limit????? Get real!
Sorry McVey, seem to have hijacked your thread... :o Will shut up now, promise!
My advice or opinion is offered in good faith but without prejudice or liability. It should not be considered as legal advice. If in doubt, seek advice from a qualified legal professional.
"Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure" - Marianne Williamson
Student loans - do they count?
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Originally Posted by mattjackrabbit
thanks guys!!
