Student loans are threatening CCJ - help please

One_Fine_Day_2

Purely as a product of my own stupidity I have ignored Student Loans for the last three years; filed their letters in the bin and generally buried my head in the sand.

I did also have other debt issues (serveral defaults, one CCJ for a credit card) but dealt with it all two years ago, making full and final settlements and getting back onto the straight and narrow, with all payments now up to date on everything. Why on earth I didn't deal with the student Loans at the same time is utter idiocy.

Anyway I received a letter from them yesterday telling me that:

"your account is currently pending issue of a County Court summons... you will be shortly issues with documentation from Northampton County Court...we may also choose to enforce the judgement.. To avoid this..contact our office no later than 20th February to clear the full remaining balance of £5363.27"

Obviously the last thing I want is a CCJ (the other one was three years ago and so my credit 'score' has been battered but is beginning to recover), but I simply don't have that much money sloshing around.

I will pone them today but wondered whether, in the wide experience of the forum members, they're likely to accept a monthly payment at this late stage (possibly in conjunction with £500 up front to show good will) and how much per month they'd consider a reasonable offer to be. I earn a decent wage but after rent, bills, nursery fees etc there's not a lot left over...

Thanks in advance.

fermi

If you make a fair offer they would be a bit daft to continue with the CCJ.

They always demand the balance in full at first, but in my experience will accept less.

Blackruby

I thought student loans people only took money off you once you are earning over a certain amount? I finished uni in July and don't want them coming after me for the 15 grand I owe them.

Sorry to answer your query with another query but I hope you can get it sorted and well done for sorting othe other stuff.

fermi

Blackruby wrote: »

I thought student loans people only took money off you once you are earning over a certain amount? I finished uni in July and don't want them coming after me for the 15 grand I owe them.

They won't. Don't worry. Only applies to pre 1998n loans.

If you fail to defer on the old style loans despite earning less than the threshold then you will build up a series of arrears.

They will only backdate any deferral for 3 months, so if that has been going on for years then they will demand payment of those arrears.

I got caught out with this, so I know only too well.

They refuse point blank to accept any evidence that you were not earning above the limit if you didn't defer properly at the time. Unreasonable yes, but it appears that legally they don't have to.

Blackruby

Thanks, fermi, that's set my mind at rest slightly. I know the SLC chase people for money when they drop out half way through the year aswell, couple of my mates have been caught out with that.

GeorgeUK

When were the loans taken out?
Before or after September 1998?

And when was the last time you made a payment or wrote to them asking for a deferral

Merlinexcalibur

Just got my deferment forms through today for another year.

Took mine out between 1993-1995. But as I've been 'acknowledging' by deferment each year since guess am now bound. Not that I would deliberately try and avoid any debt ... because I am just someone who doesn't ... but wish I could get rid of this cos the interest payments daily ... and I will never be able to repay it. Not now. Never fortunate enough to get a job earning what you'd need before deferment became defunct. Nor ever will, not now, not at my age in life.