CSA payments from students

potatan

I'm an NRP who had dealings with the CSA from about 9-13 years ago - unfortunately for various reasons about 9 years ago I was suffering from clinical depression, was also unemployed and was almost about to have my home repossessed. I told the CSA this and they stopped sending me letters - there were probably easier cases than me to pursue at that time.

Back to the future (i.e. now), and I've just received a letter out of the blue to my new address (been here 6 years) asking for ~£850 with an immediate payment request of ~£850.

The thing is that I am now a full-time degree student in my final year. As well as the usual student loans and maintenance grants, I have a part-time job in the University library earning around £100 a week. I also live with and support my son (from a previous marriage, not from the PWC relevant to this case).

So that's the background - a few questions:

The arrears (I think) date back to the time when the child was born, over 13 years ago. Can the CSA collect payment from such a long time ago? (Bear in mind they have not been in touch for around 7-8 years - despite me having several PAYE jobs i.e. paying normal tax and NI)

If the arrears are to be paid, I cannot find ~£850 in small change around the flat - are they likely to attach a DEO to my University pay?

If they then go on to carry on collecting monies from me, I understand that my Uni pay will count as income, but what about the grant and student loans?

I'd like to think that my only assessable income is £100 a week and hence any DEO will be in the £5-a-week category, but can't find any mention of students on their website.

Many thanks in advance.

flateric81

if your arrears are £850 they will ask for that amount up front, although you can negotiate a more affordable plan with them. to do this you will have to contact them and make payments to them, if not they will put a deo in place and take the maximum amount they can from your wages.

a student loan would not be taken as part of your income, but the grant probably would be- it would be averaged over the year to determine a weekly amount.

they can still collect the debt from 7-8 years ago regardless of contact, as it would have still taken money to raise your child over this period.
you would need reassessed on your new circumstances - even if you are assessed on £5 per week, they could take £35 per week to cover arrears.

potatan

Thanks for the response.

Having read a bit further and searched a little deeper, it appears that full time students (i.e. me) are probably exempt from making CSA payments. See here for example (search for "student").

So I'm now wondering if being a full time student exempts me from DEO's for collection of arrears too.

flateric81

they can still assess the income on your job though. - i assume you are assessed under the new rules

potatan

Not sure about the rules, but other situations allow students to work up to a certain amount of hours and to have this income disregarded - I'm thinking of my college's Access to Learning Fund for one (a kind of bursary).

I would imagine that as this is the first I have heard from the CSA for maybe 9 years, that this is an outstanding amount assessed under the old rules, and possibly just outstanding from that time i.e. there has been no ongoing liability, since they appeared to close the case all that time ago when I was having lots of difficulties.

Merry_Gentry

Have you asked them if they will attach a DEO to your earnings?? It might be as simple as contacting them, explaining the circumstances and they can give you a definitive answer.

kelloggs36

You are under the old rules. As your student loan income is not your only income, then it is counted in full along with your wages you earn.

potatan

I mean, I know the old system was fraught with problems, inconsistencies, but are you saying that if I didn't have a part time job, then the student loans *wouldn't* be counted as income?

jacklink

is it not a case of a 'student loan' is just that, it isnt your money and needs to be paid back and therefore your money is your paid income your wage meaning £5 payable to csa ?

potatan

I'll probably ring them tomorrow anyway - better than just ignoring the letters. Will report back my findings.

kelloggs36

student loans were disregarded if it were the only income but taken into account in full if it was not the only income, ie if the NRP had a job.