Student Loan Write-Off Under "Statute Barred"

bladeuk2001

Hi Guys

I'm a long time reader, but first time poster, so firstly, thanks to everyone in advance the the views/replies!

I took out a student loan during the 4 years I was at uni (sandwich course inc 1 year work placement). This loan now stands at around £15,000

Upon finishing uni in early Summer 2005, I recieved a letter asking for my employment details so that the Student Loan Company could start taking payments, or I could defer until I was earning enough... As I was actively looking for work, I decided not to defer, and wait before returning the form with my employment details

However... Once working, I completely forgot to send the form back :rolleyes:;) Any money I had leftover was earmarked for a deposit on a house in the future


<<< Fast forward 4 years >>>


So, I've been working for over 3 and a half years (first wages paid August 2005), and the Student Loans Company haven't taken any payments from my wages. This is strange, as I work for a local council and would have thought I would have been "tracked down" by now

I still get the statements through from the SLC and haven't changed address at all.


I haven't made any efforts to contact with Student Loans Company since maybe Summer 2004 when I would have applied for the loan I took in my final year of study (starting September 2004). The final loan payment for that year dropped into my account in April 2005.


What ae the chances of the SLC having to write this off under statute barred?

When will they have to force me to acknowledge/make payments before its written off?


I'm thinking Summer 2010, as that will bw 6 years from the last correspondance they had from me, when I applied for the final years loan?


And advice/guidance appreciated

Cheers
Rich

bladeuk2001

Thats a bit confusing/wordy, looking over it, so I've condensed this town to a timeline...


Summer 2004 - Applied for final year of student loan
April 2005 - Last student loan payment
June 2005 - Graduated
Summer 2005 - Letter from SLC asking for employment details. No reply given from me
August 2005 - My first wages paid, no student loan payment taken

---

March 2009 - Annual statements continue arrive, but no payments taken, or correspondance from my end

---

Summer 2010 - 6 years since I sent anything to SLC, writeoff possible?

Sol00

It would be summer 2011 as that would be 6 years from payment.

Lokolo

Only thing is when you took out SL you signed an agreement to inform employers and themselves if you are earning and any change in address's... which you haven't done the former obviously, otherwise money would be coming out of your PAYE.

oscar52

I may be wrong, but I am pretty sure Student loans cannot be written off under statute barred.

I too have student loans, and again they havnt attempted to take any payments.

churchrat

I am sure that SL cannot be written off under the 6yr rule.

theartfullodger

Sorry if I'm dumb but are you saying you don't want to stick to your side of the bargain with Student Loans, both legally & morally??

Cheers!

Artful

CLAPTON

Curiously and of course absurdly, the UK tax system of which SL repayments are part, is based on the assumption that people are honest and responsible.... daft isn't it? The level of benefit and tax fraud shows it's a mad system.

Anyway, new style student loans can't be written off as statute barred.

If they do eventually find you, they can demand the full amount immediately.

fermi

Link: Factsheet | Liability for Debts and the Limitation Act (England/Wales)

Student loans

Student loan agreements are simple contracts and this gives the Student Loans Company (SLC) six years from the date you last paid or acknowledged the debt to go to court to enforce the agreement. There are two sorts of student loans and different rules apply depending upon when you took out the loan.

Old style student loans

Old style or 'mortgage' student loans are consumer credit agreements. Payments cannot automatically be deducted from your wages. The SLC has to go to court before they can enforce the debt against you. This means that the Limitation Act can apply if you have not paid or acknowledged the debt for over six years.

WARNING Asking for the loan to be deferred could count as acknowledging the debt and start time running again.

New style student loans

From September 1998 new style or 'income contingent' student loans include rules to say that repayments will be automatically deducted directly from your wages or through your tax return if you are self-employed. This means that the SLC are still allowed to take money from your wages for a loan over six years old as they do not have to go to court to do so

nadine12

It all depends on your earnings....they won't take any payments unless you earn over a certain amount each month. I'm not sure what the amount is now, I have payed contributions to my loan in the past when my earnings have been higher but at the moment I am working part-time taking home just over £800 a month..so they don't take anything at the moment. Think it just kicks in automatically then when my pay increases??

oscar52

nadine12 wrote: »

It all depends on your earnings....they won't take any payments unless you earn over a certain amount each month. I'm not sure what the amount is now, I have payed contributions to my loan in the past when my earnings have been higher but at the moment I am working part-time taking home just over £800 a month..so they don't take anything at the moment. Think it just kicks in automatically then when my pay increases??

it workes out at £1250 per month or £288 a week

But i wouldnt gaurantee that SLC will automatically take a payment when you hit this amount - they havnt been doing so with me.