Help With Student Loans - HERE!

Tomi_2

Complicated one this, but here goes...

I’m an Architecture student on my year in practice, my fourth year. I applied belatedly (February) for a student loan for this year because I’m going to lose my paid placement due to the recession. According to the university (Manchester) students in their year out are entitled to a reduced loan (about half). About two weeks after applying I received a phone call from my LEA telling me that they had initially approved my loan and then changed their decision, telling me I wasn’t entitled to a loan while on my year out (which I know that I am - I have since triple checked with the university).

Here is the complicated part... No sooner had I been contacted by the LEA, I was contacted by the university, explaining that I was enrolled in error on my year in practice. I failed to complete my final project of the third year due to personal circumstances, and had deferred to complete my studies this year (while in my placement I have been completing my third year’s work). Because of my deferring, I was incorrectly enrolled on the course, and therefore my enrolment was cancelled and I would have to register my year’s experience through RIBA (Royal Institute of British Architects) but submit my project as arranged in May.

Still with me?... Shortly afterwards I received two letters on the same day from the LEA, the first one stating that I would be awarded a reduced loan, the second explaining that I wouldn’t be awarded a loan (as expected after the phone call). Then, last week, a £1165 student loan payment was deposited in my bank...

Ok, now I’m confused... When I applied for the loan, as it stood, I was entitled to it and correctly registered on my course. Then, since my application, I have been (wrongly) told that I wasn’t entitled to it and wouldn’t be receiving any money. Then, my enrolment is cancelled on my course (am I classed as a student in my third year still because of deferring? Am I classed not as a student at all?). Then, I receive a loan instalment.

What should I do? I could really do with the loan for when I lose my placement (the architecture profession has been rocked hard by the recession) but have I been given it in error? Will I be asked for immediate repayment? Or have I been given it correctly like I was entitled to when I applied, but will receive no more instalments? Do I need to inform the Student Loans Company that my enrolment has been cancelled? Currently, I have put the loan in a web saver that I have so that I don’t touch it at the moment. Please advise me!

ForRicherForPoorer

I recently re-trained as a teacher, and took out a student loan.
I recall that at some stage during the training year my tutor claimed that if we stayed in teaching for 10 years after qualifying, our student loans would be wiped.
Was he right?

kiky80

ForRicherForPoorer wrote: »

I recently re-trained as a teacher, and took out a student loan.
I recall that at some stage during the training year my tutor claimed that if we stayed in teaching for 10 years after qualifying, our student loans would be wiped.
Was he right?

no he wasnt right - the repayment of teacher loans scheme was only piloted between 2 years - this is not the case for you, the loan I am araid would hve to be paid back and will be debited from your salary until cleared in full

kiky80

Tomi wrote: »

Complicated one this, but here goes...

I’m an Architecture student on my year in practice, my fourth year. I applied belatedly (February) for a student loan for this year because I’m going to lose my paid placement due to the recession. According to the university (Manchester) students in their year out are entitled to a reduced loan (about half). About two weeks after applying I received a phone call from my LEA telling me that they had initially approved my loan and then changed their decision, telling me I wasn’t entitled to a loan while on my year out (which I know that I am - I have since triple checked with the university).

Here is the complicated part... No sooner had I been contacted by the LEA, I was contacted by the university, explaining that I was enrolled in error on my year in practice. I failed to complete my final project of the third year due to personal circumstances, and had deferred to complete my studies this year (while in my placement I have been completing my third year’s work). Because of my deferring, I was incorrectly enrolled on the course, and therefore my enrolment was cancelled and I would have to register my year’s experience through RIBA (Royal Institute of British Architects) but submit my project as arranged in May.

Still with me?... Shortly afterwards I received two letters on the same day from the LEA, the first one stating that I would be awarded a reduced loan, the second explaining that I wouldn’t be awarded a loan (as expected after the phone call). Then, last week, a £1165 student loan payment was deposited in my bank...

Ok, now I’m confused... When I applied for the loan, as it stood, I was entitled to it and correctly registered on my course. Then, since my application, I have been (wrongly) told that I wasn’t entitled to it and wouldn’t be receiving any money. Then, my enrolment is cancelled on my course (am I classed as a student in my third year still because of deferring? Am I classed not as a student at all?). Then, I receive a loan instalment.

What should I do? I could really do with the loan for when I lose my placement (the architecture profession has been rocked hard by the recession) but have I been given it in error? Will I be asked for immediate repayment? Or have I been given it correctly like I was entitled to when I applied, but will receive no more instalments? Do I need to inform the Student Loans Company that my enrolment has been cancelled? Currently, I have put the loan in a web saver that I have so that I don’t touch it at the moment. Please advise me!

the loan you will ahve to pay back once the LEA has notified SLC that this has been paid and mix up with the courses - this will impact on any future entltlement you will be eligable for, the loan also will be acruing interest each day you have it and will add to the balance when it comes to you repaying - howevere you will have the option if you are still studying to add to your final balance. Any grant payments that you may have been paid however though will have to be repaid just now (not sure if you have as was not mentioned) so theblaon although in your best interest to repay just now you have the ption to add to your fnal balance - however will affect your future entitlement but any grant monies owed are t be repaid just now, hope that helps a little

kimbers103

I'm confused about my student loan and I've been to my MP about it and heard nothing back - but I was wondering if anyone else has noticed or whether I'm just being stupid.

I've been paying off my SLC loan since I graduated in 2004. The amount (£70 or so) comes out of my wages directly every month. Now I thought I would look into how much I had left to pay as the statements from the Student Loands Company are rather few and far between. When I got through to them they told me they couldn't give me an up-to-date amount as the money I pay through my wages every month goes to Her Majesty's Revenue and Customs, where they hold onto it for a YEAR before paying it to the Student Loan Company to pay off my loan.

Now, looking at the statements I get through from SLC, I get charged a DAILY interest rate. Now, am I right in thinking, that means I'm getting charged interest on a higher balance than I should as the HMRC are keeping my payments throughout the year, and also does this mean HMRC are getting the interest on my payments but not handing it over to the SLC and keeping it for themselves?

Any clarification would be gratefully recieved! Any ideas??

littlemissmoney

kimbers103 wrote: »

Now, am I right in thinking, that means I'm getting charged interest on a higher balance than I should as the HMRC are keeping my payments throughout the year, and also does this mean HMRC are getting the interest on my payments but not handing it over to the SLC and keeping it for themselves?

No and no. They only pass the information over annually, but when they do they also pass over the payment dates and the interest is calculated correctly on a daily basis. Don't panic

BruceyBonus

kimbers103 wrote: »

Now, looking at the statements I get through from SLC, I get charged a DAILY interest rate. Now, am I right in thinking, that means I'm getting charged interest on a higher balance than I should as the HMRC are keeping my payments throughout the year, and also does this mean HMRC are getting the interest on my payments but not handing it over to the SLC and keeping it for themselves??

I believe the payments are backdated to the date you actually paid them from your wages. The interest is then calculated based on this.

kimbers103

Oh thats ok then! I admit to being pretty horrified at first but no one seemed to be able to explain it to me from the SLC, they just kept saying it was a matter for HMRC and goodbye, have a nice day!

Thanks both! :j

loopylu36

Hi, I'm sure I just posted this but have no idea where it's gone

Anyway, I wonder if the fact that I have a dire credit rating due to being on a Debt Management Plan will stop me getting a Student Loan? I want to go to Uni in September but can't possibly do it without financial assistance and whilst I don't particularly want to add to my debt, please humour me - there is a plan! (involving me eventually earning loads and repaying everything!)

Thanks

Loopy x

Oldernotwiser

loopylu36 wrote: »

Hi, I'm sure I just posted this but have no idea where it's gone

Anyway, I wonder if the fact that I have a dire credit rating due to being on a Debt Management Plan will stop me getting a Student Loan? I want to go to Uni in September but can't possibly do it without financial assistance and whilst I don't particularly want to add to my debt, please humour me - there is a plan! (involving me eventually earning loads and repaying everything!)

Thanks

Loopy x

There's no connection between personal debt (including bankruptcy) and the ability to get Student Loans/Maintence Grants etc. However, you may well find it difficult to get a student bank account in your situation.