Student Loan Arrears & Charges

[Kickass666]

Please could somebody give me advice on my current situation with the student loans company. My loans are all pre-1998.

 

For the past two years I have been out of work but not claiming JSA. My income during this time has been extremely low and for the most part falls below what I would receive claiming benefits.

 

The first year in this situation I filled out my deferment form giving details of my income backed up by payment reports from the companies that I receive payments from. This was accepted without question.

 

The second time I was required to fill out a deferment form I sent exactly the same information in the same format as the previous year. On this occasion they did not accept deferment and replied saying that I needed to provide further evidence of how I could survive on such a low income.

 

Although eventually I was able to satisfy their need for further information

- in the time it took to do so they began to demand repayments and charge me for each letter they sent.

The arrears and charges have accumulated to an amount that I have no way of paying.

 

For each month that passes I am being charged £40 in letters which is being added to the outstanding balance.

On top of this they have given me a 'default notice' which affects my credit rating.

 

My main question is what should be my main course of action to get out of this mess ?

 

Additional points that I would appreciate some information on ..

 

- I read an article about student loans (http://www.guardian.co.uk/money/2009/apr/29/student-loan-poor-credit-rating)

and credit scores which stated the 'measure was a last resort and said it would contact borrowers first

and give leeway to those who are genuinely struggling.' .

 

As they had received all information relating to my low income

should they have been allowed to give me a default notice?

 

- I attended two universities.

 

When sending out deferment forms each year my loans from two universities are combined within one deferment form

which is sent to me in a single letter.

 

When sending out arrears letters for which a £20 charge is incurred the loans are split into two separate identical letters

which arrive at my home on the same day (Costing £40).

 

In the past I have been credited for some of the letters (As a gesture of goodwill)

but then they continue to do the same thing.

 

Is this allowed or is there any way to stop this happening once and for all?

 

- I have already sent them letter asking them to reconsider their position

and asking them to reverse the charges and arrears

but this has been acknowledged but ignored.

 

Would there be any benefit in contacting some external organisation such as the financial ombudsman etc.

 

Any advice would really be appreciated.

[noomill060]

If you are still there, read my SLC thread and how I sorted them out. Similar situation to yours.