Student Loan problems

bobbykansas

Hi

I got a student loan back in 1999, deferred payment for a couple of years and then when i moved house I did not receive any more letters and after advising my new address I did not chase.

I have now had mail forwarded to me from a previous address from the Student loan company and from debt collection agencies saying i owe £1700 in backdated payments as i have not been defering.

does anyone know if i can get the student loans company to cancel this backdated debt, as they have never been in contact with me, and I have received no correspondence directly from them??

. I would be willing to carry on defering if they can ever get my address correct.

Robert_Sterling_3

It is best to make sure that they have got your correct address. If you do not hear from them in the first three months of the year phone them and get them to confirm that they have got your present address.

robredz

This shower have extra rights to reclaim the cash, I think they can even pursue someone who has been declared bankrupt "Since 1 September 2004 all outstanding student loans cannot be claimed in bankruptcy. They remain the responsibility of the (former) student to repay within the terms of the loan arrangement." quoted from this site: http://www.insolvency.gov.uk/faq/faq.htm#6.

Best thing is to try to arrange some payment and so long as your income does not exceed the current threshold defer and keep deferring. They will be as relentless as TV Licencing to get the £1700 off you, they will claim that it is up to you to defer and are intransigent with regard to any monies they deem owing, even if your earnings have been below the threshold for repayment. Being on benefits also may not cut any ice with them, as even though being on JSA or Incap et.al is an automatic reason for deferral, you must keep applying annually or they will want the money unfortunately, they have also sold some of the debt on, and will pass you over to Scotcall (a debt collection agency) to chase you for the money, as appears to have happened to you. Sorry this seems a bit negative, but this lot are probably even worse than the taxman short of death there is little chance of them cancelling the assumed debt.

rinkydinkpanther

You can try, but I don't rate your chances. Do you have proof you notified them of your change of address ? Even if you did, deferral is not an automatic right and it is your responsibilty to apply within the timelimits and provide proof of income each and every tax year in order to continue to be eligible for deferral. They will argue that you should have contacted them if you didn't get your paperwork, especially as you had moved house.Once you let the deferral lapse, you are immediately liable for payment, plus costs if they need to use debt collectors.

Sorry not to be more hopeful. You need to get in touch with them and try and come to an arrangement. Good luck.

stephensdan

You are going to have to suck it up and get in touch with them with a view to sorting it out. You will be able to arange some kind of plan if you go the right way about things and communicate with them properly, otherwise if you are an !!! or leave it - it will get worse.

All the best.

bobbykansas

thanks all, i guess ill call them again and make sure they have my details

jccaird

I had this exact same problem, and sadly there is not a jot that can be done about it. They sent a formal demand for 15 months of non-payment despite the fact that I had informed them of my new address - the problem was heightened by the fact that my parents also moved and neither my new address or my parents new address was updated on their system.

The onus was on me to chase them when I did not receive my first deferrment letter not on them to check their records more closely and find that I had filled in a form with my new address AND my parents new address. Instead, they used a tracing agency a whole year later (I wonder how much the tracing agency charged them when they could have looked up a document they had scanned onto their system.....) and the best they could do was knock 25% off the arrears.

I ended up having to pay £1,400 back to them early.

Sadly, you're pretty much held over a barrel for any mistake they make with regards to not updating your records.

Robert_Sterling_3

Note to all students.
The student Loan Company makes loans.
It likes to be kept informed about where you live.
It likes you to apply for deferral of repayment each year after your course finishes or for you to make appropriate repayments.

robredz

Robert_Sterling wrote: »

Note to all students.
The student Loan Company makes loans.
It likes to be kept informed about where you live.
It likes you to apply for deferral of repayment each year after your course finishes or for you to make appropriate repayments.

Follow this advice as they will catch up with you, some loans have been sold on also so watch out.