Can student loans touch my savings?

JamieandJenny · 15 August 2017 at 4:32AM

Hi all,

I looked through the forums and couldn't find one dedicated to student loans so hope it's okay to post here - feel free to move this post if necessary.

I've been paying my student loan off (minimum repayments taken from my earnings) since leaving university (2006) but recently went travelling. I quit my job, flew to asia to get married and my wife and I have been living off savings since February.

Recently the SLC sent letters to my parents address requesting information on my current situation to determine whether I need to make repayments. My circumstances are that I am unemployed and have no earnings so I shouldn't have to pay anything if I declare myself to be travelling, however my wife and I do have savings in ISAs and other savings.

I need to provide bank statements from the last 3 months to show that I am not receiving earnings but I am worried that the SLC will be able to look at my savings and take a chunk of that!?

All research I have done mentions repayments from earnings but nothing about unemployed people with savings...

Is this possible? Or do I have nothing to worry about seeing as I am unemployed?

Thanks in advance for any help!

JJ X

Kim_13 · 15 August 2017 at 7:50AM

They can't touch the savings. They want the bank statements to check that you aren't hiding income and that the savings are sufficient for you to live off of. If you have a sufficient amount in one bank account you wouldn't have to send everything, in fact the form seems to assume that no one keeps savings in ISA's etc.

anto164 · 15 August 2017 at 1:27PM

As long as you're not getting more than the £17.5k repayment cap in income from your savings (which sounds unlikely) that, then i'm sure you'll be fine.

(that equates to around £1.2million in a 1.5% interest account)

sheff6107 · 16 August 2017 at 5:02PM

Your savings are merely unspent income. They can't count it twice.

In an ideal world you'd tell them to f-off, but they now have a modus operandi of "apply penalty to interest to the most people possible" and "refer to a debt collector at the first opportunity" (because so many people aren't paying back because the system is screwed).

Just send them a copy of your bank statements ASAP.

Can student loans touch my savings?

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