Student Loan Company

[Erroneus]

Hi, I need some advice as I am not sure the best way to jump.

 

I received a student loan pre1998 but only completed 2 years of course as needed employment.

(fell in love, got house yadda yadda)

 

Unfortunately due to prior medical problems I was only able to maintain a part time employment.

 

( I feel this is important: Had brain tumour, semi paralyzed, could walk, in worst condition did claim disability benefit for approx 2 years

about 10 years previously BUT signed myself off when I became able to walk and hold pencil, write.

 

Due to radiotherapy some 10 years later had hormone problems and was still unable to work full time.

 

Throughout this time had received intermittent annual statements from SLC, and they had contacted my employers to get money from part time wage.

( at one point they took some cash off 1 weeks wage?!?).

 

I now have 3 children and in Sept 2011 after having growth hormone replacment for 2 years was able to return to full time work.

 

The SLC have now sent a letter - Repayment of Income Contingent Loan, which states they have been unable to find my details through HM Revenue+Customs

and I am no longer in employment or in receipt of taxable benefit.

 

If I do not send them details within 28 days I will be fined £150 and any additional costs. HELP

[dx100uk]

when was your last financial transaction or deferement or ack of this loan in writing

[citizenB]

Have moved thread from Welcome forum to Student forums

[Erroneus]

I think the company I worked were hassled and although I was only working part time I remember seeing a SLC deduction in one months wage. Only happened once. That would be about 5 or 6 years ago. Will this come down to the 6 year cut off? To be honest I am not sure of dates, I know I've not contacted the SLC directly and know that I have never knowingly made any payment.

[dx100uk]

pretty sure it will be sb'ed then if its the old type student loan.

 

they cant add charges anyway, they are a penalty and can be reclaimed

 

dx

[Gbarbm]

Hi Erroneous

Prior to April 2000 the student loan was dealt with solely by the Student loan company (referred to as mortgage style)

From April 2000 responsibility passed to HMRC and the loans became income contingent.

Every 2 weeks the Student loan company computer would talk to the HMRC computer and carry out a matching exercise by using the national insurance number for PAYE employees or the UTR (unique taxpayer reference) for self employed individuals.

A match would then issue form SL1 (start notice) to the employer.... That's the science bit over!

 

When you were in receipt of employment income an SL1 would have been issued to your employer

who would have made deductions from your pay if your income was £10000 or more per annum

( £800 per month or £192 per week) at a rate of 9% over the threshold

 

For example weekly pay = £200 less threshold £192 = £ 8 x 9% = 72 p

 

The employer pays this over to HMRC and at the end of the year

the total amount is entered on your P60 who notify the student loan company who then deduct it from the outstanding balance.

 

If you leave before the end of the fax year, the employer makes an entry on form P45

to notify the next employer that you are a student loan employee.

 

The current limit is £15000 per year

 

If you are a foreign student you pay the student loan company direct.

 

Student loan deductions can continue to be deducted from your pay until age 65

 

Hope this info makes things a wee bit clearer.

 

Kind regards

Gbarbm

[Gbarbm]

I would contact the student loan company and explain your current circumstances and advise HMRC too (best to write and send by recorded delivery)

I am sure that if you owe any monies, a time to pay arrangement can be negotiated.

Any queries give me a shout!

Kind regards

Gbarbm

[Erroneus]

sb'ed? I am not very good with financial stuff, been kinda hiding from this for over 10 years. I am concerned if I contact them I will be accepting the debt (and I have quite a few already) so haven't done. Remember original debt was with other debt compant and passed to SLC.

I have never had a salary over 10000pa

Edited February 6, 2012 by Erroneus
addition

[dx100uk]

as with all your debts they should be showing on your cra file

 

does it?

 

dx

[Gbarbm]

Lending to other customers is written off at age 65. This applies to account holders who:

obtained a student loan in 2005/06 or in some earlier year, and who are continuing students.

Special arrangements write-off

All lending is also written off on death (the account holder's estate must provide the death certificate) or permanent disablement or illness (if the account holder is likely to be permanently unfit for work, the account holder or someone acting for him under Power of Attorney must produce a statement to this effect from the relevant medical authority).

 

In practice an account holder in these circumstances and whose repayments are collected through the tax system will not as a rule incur a repayment obligation since being unable to work again is likely to have no earnings against which a repayment obligation could be assessed.

 

However, since this account holder may have a source of unearned income, it may still be necessary to apply for the write-off.

[Erroneus]

Will check my CRA file. What is SB'ed please?

[Gbarbm]

Statute barred.... Refers to the Statute of Limitation Act 1980

Prevents debts being collected if there has been no "activity" for 6 years.

I have to say, I'm sure someone will correct me if I'm wrong, I don't know if it applies to Student Loans administered by HMRC, but I will check and let you know for definite

[Gbarbm]

Looks like I'm right ..... Sorry!

 

Student Loans are an unusual case, as they changed in September 1998. Any Student Loan taken out before this date was a consumer credit agreement, which means the Limitation Act 1980 applies. But any Student Loan taken since then is an ‘income contingent’ loan – so repayments can be deducted from your wages without any court involvement, regardless of how old the debt is.

[dx100uk]

no one is right or wrong here we just help....no need to be sorry

 

this is what i was trying to work out from the op

 

was is the old or the new sl.

 

as it was 'late' in '98 the op's might well have been before the change

but if he enrolled in sept 98 it wont odds on he did

 

shame.......

 

but dont let them add any charges

 

they are a penalty fee and can be reclaimed.

 

dx

[123consumer]

Hello, I'm not sure who I should speak to about this. If anyone can help Iwill be very grateful

I took out a student loan when I was at uni in Sep 2001-2004. In 2010/11 icompleted a self-assessment with my income (mostly PAYE) and how much I paid tothe SLC. Because my employer was not making payments to the SLC viaPAYE/National Insurance, I paid a sum each month so that I did not fall behind.My wages missed 4 payments but I paid over £700 by direct debit. I have justhad a demand for £500. The SLC say that my direct debits were voluntary and Istill have to pay the bill. DO I have to?

Thanks Katy