SLC advice - help please!

[MDTyKe]

Hey,

Im doing an honors degree, and currently have a loan out each year with SLC. The degree is 4 years; currently entering into my 3rd. I've got around £3000 a year from a loan (maintanence only).

I'm planning to become self employed. My perceptions were, that after I finish college, then, and only then, will my repayments begin - BUT only if I earn over the £15k threshold.

Now, after reading these forums, I'm getting a little bit worried. I'm hearing of "arrears" (which I dont actually know what they mean), and countless problems.

Should I continue these loans? I'm not sure what to do now.. it's building up (i'm not really worried, as I'm considering it as a very small mortgage), and I hope to repay it as soon as humanly possible!


Any implications/problems I should look out for?


Matt

[emmaf01]

Arrears are created when, due to deferment not being taken up or repayments are unable to be taken from the account, the SLC adds the value of each missed repayment to the account.

It is a nasty system, which penalises those who can least afford it.

The SLC are a law unto themselves. I have now won a court claim against them.

My advice is to use the problems people are listing here as a warning.

If you are financially able not to increase your debt to the SLC thats fine, but don't put yourself through hardship if you need the money. Learn from our mistakes- always send post to the SLC by recorded or special delivery, never miss a deferment date, and if they are penalising you in the future with charges, fight to get them removed.

[MDTyKe]

Thanks for the prompt reply.

Do I, however, have to make the repayments back if I'm not working or earning <15k? This is where I'm getting confused.

I thought they took it out of wages via PAYE, which is why I'm confused how the money can't be taken from them.

Note: I'll be self-employed, and filling out assessment, but that's besides the point.


Matt

[noomill060]

SLC will contact you about January about repayments. If you are earining less that the threshold, fill in the deferment form and include evidence about your earnings. If youre going self-employed get your accountant to provide this to you.