Repaying Student Loans 2009/10 guide discussion

Lokolo

tarla wrote: »

Hi, my son successfully applied for a student loan in Sept 2007, however, only attended university for approximately 1 month and then left. The uni and loan company were notified at the time.
Recently my son has received a notice for repayment for 'registry tuition' via a debt recovery company linked to the university, the debt is payable to the uni rather than the loan company.

First of all would the loan company have paid this amount, so therefore the debt would be with the loan company rather than the uni?

Secondly , does the £15k earnings rule apply in this instance ( my son has not earnt this much since leaving)

thanks for any feedback,

The debt will have likely come from the university themselves as he would have still have to pay tution fees for the first term (even though he was only there for a month!). And as he dropped out and informed student finance, they then would have not paid tuition fee.

How much is it for?

And no, as its not a student loan debt, the £15k rule doesn't apply.

tarla

The payment is for £580, bit steep for just a month!
My son is planning to start uni this October as well, although hasn't yet applied for loan as he has just aplied through clearing, will this previous debt work against him?

thanks

Lokolo

tarla wrote: »

The payment is for £580, bit steep for just a month!
My son is planning to start uni this October as well, although hasn't yet applied for loan as he has just aplied through clearing, will this previous debt work against him?

thanks

No it won't.

Not sure what to do about the other debt. I'd enquire what its actually for before paying it.

therivierakid

Am I right in saying that it's when you started uni, not when you took the loan out which determines your interest rate?

I started uni in 1996 and took out loans in the academic years 97/98, 98/99 and 99/00. The first two are managed by Honours Student Loans, the third by SLC. Are all of the three loans now at -0.4% interest and does anyone know what's likely to happen to my repayment amount?

Oldernotwiser

therivierakid wrote: »

Am I right in saying that it's when you started uni, not when you took the loan out which determines your interest rate?

I started uni in 1996 and took out loans in the academic years 97/98, 98/99 and 99/00. The first two are managed by Honours Student Loans, the third by SLC. Are all of the three loans now at -0.4% interest and does anyone know what's likely to happen to my repayment amount?

Yes you're right about this - I believe HLS bought the loans by the year, not by the individual student.

RuthS

I am going into the third of four years at uni, having accumulated £12,513 already in tuition fee and maintenance loans to be paid off. I am wondering whether it's a good idea to pay some of that back now just to start clearing it, whether I should just not take out a loan this year to stop it building up further, or to leave thigns be and take out a loan for the next year as normal. I am slightly confused by the current 0% interest rate, and wonder if it means for the dect I've already accumulated. Can anyone offer any words of wisdom?

Oldernotwiser

RuthS wrote: »

I am going into the third of four years at uni, having accumulated £12,513 already in tuition fee and maintenance loans to be paid off. I am wondering whether it's a good idea to pay some of that back now just to start clearing it, whether I should just not take out a loan this year to stop it building up further, or to leave thigns be and take out a loan for the next year as normal. I am slightly confused by the current 0% interest rate, and wonder if it means for the dect I've already accumulated. Can anyone offer any words of wisdom?

Hang onto your savings and take out the loan as usual. You'll never have a chance to borrow money so cheaply or with such easy repayments!

yoursessentially

Oldernotwiser wrote: »

The threshold figure for pre 1998 loans is much higher and you could have deferred annually and owed nothing. The money you're paying now will be for arrears and charges and you can't defer these. You should be able to make a payment arrangement with the SLC (sorry, just noted that you already are) but you've moved way beyond the realms of deferrment if you're owing arrears and charges for 16 years!

Have they told you what the total you now owe is?

have paid 75% of it off which is a lovely feeling, but thanks:D for replying as shall just finish it off. as you point out, years of moving & getting on without being nice to them is the justification courts needed! beware, keep the !!!!!!!s infomed :beer:

captain_planet

Hi, I have just got a letter saying I owe £422 from my self assessment. I called them and worked out with the guy on the phone it was for student loan. Basically in 2007-08 tax year I was earning below the threshold so didn't pay out of my wages. However in Feb 08 I got a bonus of £4k, meaning my earnings for that year were above the threshold, however nothing was deducted from my salary. In March 08 I started a new job, and my wage was over the threshold so I have been paying each month.

Now they have obviously noticed on my self assessment (which they have had since January) I had not paid in 07/08 and they want me to pay within 28 days.
I am overdrawn and so there is no way I can pluck £422 out of the air.

The annoying thing is they only picked up on this because I do self Assessment as well, and I am quite annoyed it has taken them so long to demand the money, and also demand I pay it within 28 days.

I know I don't have to pay it right away and should be able to come to some kind of arrangement but I'm not sure where exactly I stand, any advice?

Thanks

Oldernotwiser

captain_planet wrote: »

Hi, I have just got a letter saying I owe £422 from my self assessment. I called them and worked out with the guy on the phone it was for student loan. Basically in 2007-08 tax year I was earning below the threshold so didn't pay out of my wages. However in Feb 08 I got a bonus of £4k, meaning my earnings for that year were above the threshold, however nothing was deducted from my salary. In March 08 I started a new job, and my wage was over the threshold so I have been paying each month.

Now they have obviously noticed on my self assessment (which they have had since January) I had not paid in 07/08 and they want me to pay within 28 days.
I am overdrawn and so there is no way I can pluck £422 out of the air.

The annoying thing is they only picked up on this because I do self Assessment as well, and I am quite annoyed it has taken them so long to demand the money, and also demand I pay it within 28 days.

I know I don't have to pay it right away and should be able to come to some kind of arrangement but I'm not sure where exactly I stand, any advice?

Thanks

You can always try to negotiate with them but, as you've known about the situation for 18 months, they may be less than sympathetic.