Student Loan Quickie

[SStevens]

Hi all

 

Just wondering when the clock starts ticking for potentional SB re student loans.

 

For example if you deferred Feb 2003 would the SB clock start from Feb 2003 as that's the last time you had made contact and confirmed the debt - or would the SB clock start from Feb 2004 as the deferrment lasts one year until you have to acknowledge the debt again??

 

Thanks

 

Sy

[MARTIN3030]

Taken from the National Debtline website...

 

STUDENT LOANS

Student loan agreements are simple contracts

and this gives the Student Loans Company

(SLC) six years from the date you last paid or

acknowledged the debt to go to court to

enforce the agreement. There are two sorts of

student loans and different rules apply

depending upon when you took out the loan.

Old style student loans

Old style or ‘mortgage’ student loans are

consumer credit agreements. Payments cannot

automatically be deducted from your wages.

The SLC has to go to court before they can

enforce the debt against you. This means that

the Limitation Act can apply if you have not

paid or acknowledged the debt for over six

years.

WARNING

Asking for the loan to be deferred could

count as acknowledging the debt and start time

running again.

New style student loans

From

September 1998 new style or ‘income

contingent’ student loans include rules to say

that repayments will be automatically deducted

directly from your wages or through your tax

return if you are self-employed. This means

that the SLC are still allowed to take money

from your wages for a loan over six years old

as they do not have to go to court to do so.

[MARTIN3030]

WARNING

Asking for the loan to be deferred could

count as acknowledging the debt and start time

running again.

[SStevens]

Thanks for the responses - so to clarify if I deferred in Feb 2002 the SB clock starts ticking from from Feb 2002 in no more contact is made? It's just I'm concerned that this acknowledgment may be valid for one year as deferrment covers one year, so they could theoretically start the clock from Feb 03??

 

Thanks

 

Sy

[cerberusalert]

If you deferred in 2003 it would become due in 2004 so that's when the SB clock would begin ticking, but only if it was the 'old style' student loan. When was the loan taken out?

[SStevens]

Hi

 

Yes, I have the old style student loan - was just hoping the clock starts from the last deferrment and not a year after the last deferrment oh well!!

 

Thanks for your help

 

SY

[cerberusalert]

Well if you last deferred in Feb 2003 the SB clock would have started Feb 2004 so it would be SB Feb 2010 in England/Wales, Feb 2009 in Scotland in any case.

[SStevens]

I just used those dates as an example - I have a bit to wait yet

[SStevens]

Thanks for you replies.

 

Just another quick one, a few years ago the slc caught up with me via telephone and rung me at work!

 

I did not enter in to a conversation with him - he kept asking questions and I responded that I wouldn't comment unless he told me slc had received my last deferrment. He wouldn't tell me (as I knew they hadn't) so I told him to never ring me at work again. He then said something like 'we'll get you eventually' and slammed the phone down.

 

I was under the impression that this is NOT acknowledgment - but after reading some posts I don't know whether that was?!!?

 

Please help

 

Thanks

 

SY

[cerberusalert]

I was under the impression that this is NOT acknowledgment - but after reading some posts I don't know whether that was?!!?

It's not, he could have been speaking to anyone... it needs to be in writing.