Student Loan Payments

leicsmarkyr

Not sure if in the right area…

I was a student from 1996 to 2000 and took a student loan each year (in addition to the grant I got my local authority). These loans are the ‘older’ type where you pay by Direct Debit instead of via your wages.

Up to now, I have been able to defer as my wage has always been under the threshold. However, got a new job in October 2008 and brought me over this amount now.

I have received the forms telling me the amount I need to pay monthly for the next five years. Based on the fact I have other loans and bills to pay and he state the economy is in currently, I am unable to pay the full amount they are asking. One my loans ends in July 2009 so will be a bit better off then.

What are the chances of SLC allowing me to pay a reduced amount; say half of what they have stated on the forms? Has anyone for any experience on this? After bills and payments taken out, I have about £250 a month to cover food, social and emergency funds for anything that may appear? I can just about cope with this amount; the loan payment would eat about half this and thus cause issues.

Any help will be grateful. I know I will need to speak to the SLC but thought try on here first.

Oldernotwiser

leicsmarkyr wrote: »

What are the chances of SLC allowing me to pay a reduced amount; say half of what they have stated on the forms? Has anyone for any experience on this? After bills and payments taken out, I have about £250 a month to cover food, social and emergency funds for anything that may appear? I can just about cope with this amount; the loan payment would eat about half this and thus cause issues.

.

I have to be honest and say you have pretty well no chance, although you might as well ask, for your own satisfaction.

Managing on £125 per month for the next 5 months is doable and will certainly allow you to eat; it's about what you'd have to manage on if you were on benefits. Have a look at the DFW Board for ways in which to cut down on your expenditure.

You will affect your credit record just as much by defaulting on a Student Loan as you would with any other form of finance so you may have more luck negotiating with your existing creditors if you find that you really can't manage.

Sorry.

Fire_Fox

Why don't you complete a Statement of Affairs and post it up on the Debt-free Wannabe board? The regulars are really friendly and can find a way through the most impossible looking budgets. They will also help you with which are priority bills and which can be juggled. Just to give you a feel for what is possible check out the "live on £4k for a year" thread. That's for an entire family BTW.