Students loans - dealing with debt after bankruptcy...

neverthesamedaytwice

Hi

I'm writing for a bit of advice. I'm recently bankrupt – agonised over it for ages.. but finally went through with it this January. While it wasn't the worst thing in the world, I don't ever want to have to do this again, and I'm keen to keep my finances in order from now on; however, my student loan account (which obviously weren't covered by the BR) are in sore need of attention.

I have held these accounts since beginning university in 1997. My four loans were later split between two companies (SLC and Honours Student Loans). I have let my relationship with the two companies deteriorate (I.e. ignored them for around nearly two years, and they currently don't know where I'm living).

I want, and need, to make amends – but I'd like advice on the best way to go about doing so.

Currently I'm unemployed and claiming JSA, so I don't have any income that I can make payments from. I'm intending on starting up a freelance design business – so money will eventually start coming in. I'd like to be able to defer my loans – but I'm worried that due to my ostrich-like behaviour, my debt could have been passed to a debt recovery company.

I was intending on writing to each company, explaining my situation – but I'm wondering whether they're likely to be flexible in helping me get back on track .. or whether I'll end up getting two calls a day from a debt recovery agent, regardless of my circumstances.

I fully intend to pay back the debt, but if it's the later scenario, I'm tempted to wait until I'm able to afford regular payments.

Anyway.. thanks all for the great advice posted on the forums – it's helped me a lot over the past couple of months. Any advice much appreciated.

Cheers

Luke

DON79

Hi neverthesamedaytwice

student loans are not something I know anything about am afraid but I can suggest that you do get advice from national debtline or cab or cccs about the best way to handle things.

Hopefully someone else will know a bit more or can offer some better advice for you.

Donna

fermi

Talk to to them, but don't take any rubbish.

SLC passed my arrears to CapQuest, but after a letter and a few phone calls they passed it back to the SLC. Funny that.;):cool:

If you are on JSA there is nothing they can do.

headoutofsand

You have to earn over £15000 before you pay anything. Student loans are wrote off after 25 years. The 25 year bit may be new.

neverthesamedaytwice

Hi - a quick update on what happened re. the above, in case it helps someone in a similar situation.

I ended up sending a letter explaining my situation, and my desire to sort out my finances re. student loans. As my loan was split between the two companies (honours and slc) I sent one copy of the same letter to each.

The responses were pretty different. The student loans company responded and arranged for a deferment - and were realistic and helpful (to my surprise). I've arranged a token payment of £10 per month, until my income starts rising again.

Honours Student Loans didn't reply to my letter (despite my sending it via registered post) - and immediately threatened me with legal action via a number of standard-form letters, unless I paid the full amount. I ended up calling a representative from the company who virtually bullied me into admitting that I was a failure / idiot and that I've only got what was coming to me.

I ended up having to write to them via email, copying my complaint to the financial ombudsman (and threatening further action) before they looked into my request seriously. This led to a change in tactics on their behalf and they've matched the Student Loan Company's offer of £10 per month.

In short - don't take any sh*t from these companies or their representatives.. and know your rights. They are not a law unto themselves.