Student Loan

creditpunch

Hello all

Can someone help me with this, please?

I have a student loan of circa £4500 I wen BR on the 29th Jan 2009. What happens? do I pay it back while BR, once discharged and do I therefore include it on my SOA?

Thank you

CP

fermi

Are these the new or old style loans? And are you earning over the repayment thresholds?

With the new (1998 onwards) type the payments will come out of your wages directly if you earn enough. You would keep paying these in that way.

For the old style, where you have to apply to defer payments if you are earning below the threshold, the the payments required by the SLC if you are earning too much to defer can be included on your SOA.

creditpunch

Thanks Fermi

Good clear advice as usual.

the last sentence of the last paragraph applies to me so I will be including it in my SOA, will let the OR know.

thanks again.
CP

creditpunch

Sorry one more question....

If I have arrears (say 4 months ) on my loan repayments what happens there?

fermi

Just hunted out the link to confirm that.

Here you go:

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part2/part_2.htm#37

Where the bankrupt's student loan liability falls in to the category of a non-provable debt and the bankrupt is required to make repayment against that debt during the period of an IPA/IPO, this is an expenditure which needs to be included in any IPA/IPO calculation

In other words, it is allowable on your SOA.

fermi

creditpunch wrote: »

Sorry one more question....

If I have arrears (say 4 months ) on my loan repayments what happens there?

I don't think you would be allowed room on your SOA to clear any arrears.

If you had a surplus after any IPA, then I presume you could use that.

Under the Insolvency Act 1986, while you are undischarged the Student Loans Company prohibited from taking legal action on the arrears without leave of the court.

You could offer the SLC small token payments until you are discharged. That is what I did. They moaned at first, but couldn't do anything about it.

creditpunch

Thanks Fermi

I could probly afford the monthly payments but not contributions to the arrears I hope they will be happy with just extending my repayments period. by 4 months.

CP

fermi

Knowing the SLC they will probably still bug you about the arrears, but if you can't afford to pay them off quickly then they have to accept it really.;)

creditpunch

What the worst they can do? an attachment to my earnings? oh man more fighting and bargaining and I thought it was over. Oh well better this than where I was last month.

fermi

creditpunch wrote: »

What the worst they can do? an attachment to my earnings? oh man more fighting and bargaining and I thought it was over. Oh well better this than where I was last month.

They can't while you are undischarged, and are unlikely to bother once the BR is over.

They are like any other creditor in that respect. They may make "noises" but they know that going through the courts is in most cases not worth their while.

Not worth worrying about at the moment.

creditpunch

Thank you, back to my new found serentiy and peace of mind, for now at least.