Student loan court threat - mental illness, unemployment - help please!

[snoph]

1st post on MSE, but use it regularly, gratefully, to save money for both myself and my partner. I am writing on behalf of my partner, as I really really want to help him out of a sticky situation, and don't know where to start...

Long story, will keep it brief. Student Loan Company have sent my partner a letter threatening court action if his arrears are not paid by next Friday. He has deferred payment in the past (he was a pre 1998 student) due to income being beneath the limit set. I believe he has forgotten to defer payment himself in subsequent years, but has never received any letters from SLC to ask him to do this. Now, out of the blue, due to newly moving house and being added to the electoral roll, he receives a demand for thousands of pounds.

My partner has earnt a salary just a few hundreds of pounds over the deferment threshold in the last few years, but has not completed a full 52-week employment in any of the years due to temporary roles (we've moved about a bit with my job), redundancy earlier in 2008 and long-term sickness (over a month in one case and 3 months in another case) in 2005 and 2006.

My partner was diagnosed with bipolar disorder (aka: manic depression) in 2005, and so is classable as having a mental health disorder. This led to the long-term sickness and a job loss in one case (grr...).

I believe that physically disabled people are entitled to longer repayment times - does anyone know what the deal is with those who are mentally disabled? It is classed as a mental disability by employers, after all.

My partner is back on the up with an excellent job and a good medication regime which means he is able to live his life as the rest of us are able to. We have a mortgage, and debts from his past are now gradually decreasing through regular payments. The letter from the SLC has thrown everything up in the air, upset him immensely and led to 'downers' this week - it seems so unfair when he's been doing so well! He cannot pay the full amount, and could not afford the monthly repayments on top of the mortgage and other debt repayments as his salary is barely over the threshold.

I suspect the SLC will say he should have dealt with it before, but bipolar disorder often leads to those with it ignoring debt because it is just too hard to deal with. I think this has been the case...

My questions are:-

(1) How does part-year working and sickness affect the threshold level?
(2) Does mental illness (proveable from the doctors) give an entitlement to extra help in repayments?
(3) How should he/I play this?

Anyone got a similar experience?

I have read things on forums about SLC failing to action deferments properly - can't be sure this was the case here, but may be one line of attack with it.

I intend to call them on his behalf on Monday morning at 8 am - so any generous help will be very very much appreciated and set both our minds at rest....

Snoph xxx

[majik]

Hi, Sorry no one has answered your post yet.

I can't actually help but am bumping your post to the top of the Threads so someone will be able to see it and help you out a little more.

[tiredandangry]

Hi
My experience is with chronic fatigue syndrome but like your partner I have missed deferements and incurred arears. They have actually been sympathetic and deferred me for 3 years.

Before my partner could talk to them they needed my permission to speak to him via a letter (because of the Data Protection Act act). Speak to them, ask who to send the permission letter to, see if they will delay action until you can "officially " talk.

Then explain the situation to them emphasising your partners fragile state, they will probably request a letter from his GP as evidence and then disguss options. Make sure you get the names of the people you deal with.

Hope this is helpful.

[Sol]

Hi

The best thing to do would be to contact the Collections dept and enter into some sort of repayment plan. If your husband is eligible to defer then ask them to hold it and to send out a deferment form.

I know it's easy to say, but SLC will always put the onus on the student to maintain their account and that means making sure deferment forms are sent every 12 months. I think SLC automatically send a new one out every year if you have deferred before but I can't remember, but you know what the post can be like.

[veester]

I partially agree with tiredandangry, though i do not think you should aim to call collections as Sol suggests.
I would probably take a more aggresive stance (in fact i did and am still in discussions)

Looking at the nature of your illness and circumstances, i would write to the SLC and ask for relief under Section 8 or Section 9 of the Student Loans Law.

Section 8 caters for long term not fit to work at all - I don't think that applies in your case, as this provision allows for cancelling of the loan if you cannot work.

Section 9 caters for the provision of relief due to other circumstance - yours in this instance would likely fall under this catergory.

I have set-out Section 9 and an extract of a letter for you below (feel free to add/edit any bits)

The thing to bear in mind of course is that they can't punish or treat you unfavourably for being ill...its not your fault!

Remember Banks/Financial Instituions have to treat you carefully and sympathetically if you are unwell and therefore vulnerable-

Check out the Disabilty Discrimination Act because it covers physical as well as mental illness- they certainly cannot send a representative to your home, if they know that you are unwell and have to tread - Very Carefully!

PM me if you need a little more guidance, and i'll send you the full letter i sent over.

_________________________ ________________________

There is no specific legislation which governs a long-term illness during which time the individual was not registered as disabled.

I would ask you to also review legislation which clearly defines a mental injury from which someone can recover over a period of time (like mine) and differentiates between this type of illness and a long–term illness resulting in disabled status.


As I am now recovering, I am asking for the SLC to take into consideration my long-term illness, without which the debt situation would not have occurred.


As I have requested on several occasions that the loan as a total be frozen and that this would allow at £XXXX per month for the loan to be paid off in total prior to my official retirement age (in fact some 10 years before); This would ensure the tax-payers money already loaned is returned, an over-riding objective as per The Education (Student Loans) Regulations 1992 through to 1998 (specifically Section 9).


As stated in Section 9:

Notwithstanding the provisions of regulation 8, the loans administrator may, in the case of a borrower who is in breach of an obligation to repay any loan installment, do either or both of the following, namely:

(a) Grant any relaxation or indulgence to the borrower which does not vary the agreement for the loan;

Provided that the loans administrator shall not grant any relaxation or indulgence in accordance with paragraph (a) unless it is satisfied that such action represents a more effective means of recovering the debt due under the agreement than instituting legal proceedings against the borrower

[veester]

Hows this gone???