Dear All,
This is my first post on the forum, so please excuse me if my post isn't quite clear, it is an unusual situation and I will do my best to explain it. It is a long post, but I wanted to include as much detail as possible. Hopefully someone will be able to offer advice
At the age of 15 years I was offered a place at university, and began my degree at 16 years of age (in 1998 ).
During this point in time, my finances were entirely managed by my father, as well as all maintenance related issues. He requested that I take out a Student Loan with the Student Loans Company, and I had no say in this matter - as a child under his guardianship I could not go against his word. So at the age of 16 (or perhaps just before turning 16), I was granted a loan by the Student Loan company, for the duration of my studies. This was also the case for my younger brother (who entered University aged 12) - a loan from the Students Loan company was also taken out in his name when he was 12 years old.
Neither of us were over 18 at the time of 'signing the contracts for the loan'.
We now both have debts with the Student Loan company of over £15,000 each - yet we were basically 'compelled' to sign for the loans when we were children. My father is no longer in contact with the family, and since all the documentation was handled by him nearly ten years ago, it is proving very difficult for my brother and I to resolve this situation - what is especially concerning is that these loans are increasing with interest every year. My father was in charge of our bank accounts and paperwork, so essentially, I am having to 'chase everything up from the beginning, which was nearly ten years ago'.
After some research on this issue, I came across the following legal notes:
http://www.occamsystems.co.uk/partne...ts_binding.pdf
My understanding is that I entered into a contract when I was under the age of 18, so could this contract could be considered as a 'prejudicial contract', as was outlined in the above article.
As children, we were not expected to question any 'money matters' whilst studying at university, but we now have debts totaling £30,000. I doubt the two of us could have spent that amount of money on our university education - we stayed at home during our university days!
Given the above situation, do you feel that our Student Loans could be considered prejudicial contracts?
Secondly, if this is a prejudicial contract, do I have the right to argue that the loan should be written-off, given that I was under 18 at the time of being given the loan?
I have been researching this issue online and contacted various companies/law advisers (Citizen's Advice Bureau, Local Education Authorities, etc.) but they are either confused, or say that I should take this issue up elsewhere.
However, my main concern is that the loans will simply increase whilst nothing is resolved. The Student Loan Company have been particularly unhelpful. Here is my correspondence with them so far:
(1) I called them on December the 5th, they asked me to call the LEA to discuss the issue, who said the loan was nothing to do with them. The same day, I again phoned the SLC. After speaking to his manager, the adviser asked me to write a letter to the Bothwell House address, explaining "The reasons why I felt I shouldn't have to pay the loan". I sent a letter on the same day.
(2) By early January, I had heard nothing from them. I again called the SLC - this adviser spoke to her manager and then said "You have to pay the loan regardless of your situation". When I mentioned that under 18's could not take out loans with banks, she said "Our student loans are different" and many people take out student loans when they are under 18. She was very rude. I asked whether there was a possibility of having a guarantor, as we were much younger than 18 at the time of loans, but she said "There are no guarantors with student loans". When I asked whether or not they were going to reply to my letter, she said it would take about two weeks from the date that it was received (10th of Dec.)
(3) At this point, I did my own research, to find the information mentioned earlier - loans are not legally binding for under 18's, as they are prejudicial contracts. They only way for a loan to be upheld is if (a) I had a guarantor, or (b) I ratified the agreement at 18. The SLC said there were no guarantors, and my brother graduated before he was 18 years old - the SLC certainly didn't ask him to ratify the loan agreement after graduation!
(4) With this information I again called the SLC last week. After speaking to an adviser (who again spoke to his manager for a long time), he said the loan is binding, because I would have either had a guarantor, or ratified it. When I pointed out that this was highly unlikely, he said he would look into it, and get back to me within a week.
Up until today, they have still sent nothing to me, and it has been over a week now. They have not even replied to my original letter that was sent a month ago. So, what should I do now?
I believe they are doing nothing, because they really do not have a valid reason for asking me to repay the loan. Which is why they have changed their arguments every time I've called them, and not responded to any of my requests for information regarding the nature of the contract that was signed when I was under-age.
The problem is that the loans are building interest, and secondly, once I start work soon (I'm currently a PHD student) they can just take the money from my salary.
How should I:
(a) Get the SLC to cancel the loan - so far they haven't even responded to my letters, so should I write a more 'legal' request for information?
(b) Is there any way to stop them from taking money directly from my salary once I start work, since the loan is under dispute?
I would be very very grateful for any advice that could be given, as the SLC are both unresponsive and unhelpful... I have contacted CAB etc. but they just say "It is unusual case, you need specialist help".
Hopefully someone here can help me...
Loan given to student aged under 18 - do I have to repay it? 
type where you make a fixed monthly repayment or the new type where money is deducted from your wages? 
