Repaying Student Loans 2009/10 guide discussion

amiehall

They won't settle the debt for less than its value no. They have rights under the law to receive the repayments in ways that your other creditors don't. It's a special debt that isn't wiped if you go bankrupt for example.

It will be written off after a certain amount of time, 25 years ish. However, if you're not up to date with your payments, your debt will NOT be written off.

Poolie

amiehall wrote: »

It will be written off after a certain amount of time, 25 years ish. However, if you're not up to date with your payments, your debt will NOT be written off.

Loans from 1999 are not subject to the 25 year rule and continue until either 65, permanent disablement which will result in not being able to work or death.

Cole_porter

Hello there.

Last year I posted here asking for help and I remember Poolie and Amanda were very kind and informed me very well, clearing my doubts. So first of all, thanks a lot for that.

Just to remind you about my case, I took a loan in 2007, just tuition fees, and graduated June 2010. Then I moved to Italy and haven't had a real steady job since then.

I was/am supported by my parents and girlfriend, and that's what I told the SLC when I sent my Overseas Income Assessment Form. I also attached them a letter signed by my parents confirming that they were supporting me financially. (Poolie recommended me to do this). Then I got a letter from the SLC telling me that it was alright and they weren't expecting any payments from me for the next year.

I just got this year's new form to fill and I have some questions.

I said that haven't had a real steady job since I moved to Italy because the only thing that gave/gives me some money was/is that I started teaching some English lessons to get some extra cash.

The thing is that i don't know how to reflect that on the form, since it's not a real job because of the ridiculous low pay that i get. I just have between 2 and 4 students per week, each of them pay me around 60 euros a month for a weekly lesson. So I earn between 120 and 200 per month. It's not steady because sometimes students quit lessons and I might not get anything that month. I am not declaring these few lessons so I don't pay taxes on them, because the self employed system in Italy makes you pay a fixed money a month, which is higher than the money I make, so...it's not possible for me at this point, I wish it was though!

So, my parents are still supporting me, so is my girlfriend. And now my question is, should I inform the SLC about these little lessons, or just tell them the same thing as last year, stating that I was unemployed and was getting third party support?

Thank you very much for your help!

Poolie

Cole_porter wrote: »

Hello there.

Last year I posted here asking for help and I remember Poolie and Amanda were very kind and informed me very well, clearing my doubts. So first of all, thanks a lot for that.

Just to remind you about my case, I took a loan in 2007, just tuition fees, and graduated June 2010. Then I moved to Italy and haven't had a real steady job since then.

I was/am supported by my parents and girlfriend, and that's what I told the SLC when I sent my Overseas Income Assessment Form. I also attached them a letter signed by my parents confirming that they were supporting me financially. (Poolie recommended me to do this). Then I got a letter from the SLC telling me that it was alright and they weren't expecting any payments from me for the next year.

I just got this year's new form to fill and I have some questions.

I said that haven't had a real steady job since I moved to Italy because the only thing that gave/gives me some money was/is that I started teaching some English lessons to get some extra cash.

The thing is that i don't know how to reflect that on the form, since it's not a real job because of the ridiculous low pay that i get. I just have between 2 and 4 students per week, each of them pay me around 60 euros a month for a weekly lesson. So I earn between 120 and 200 per month. It's not steady because sometimes students quit lessons and I might not get anything that month. I am not declaring these few lessons so I don't pay taxes on them, because the self employed system in Italy makes you pay a fixed money a month, which is higher than the money I make, so...it's not possible for me at this point, I wish it was though!

So, my parents are still supporting me, so is my girlfriend. And now my question is, should I inform the SLC about these little lessons, or just tell them the same thing as last year, stating that I was unemployed and was getting third party support?

Thank you very much for your help!

Based on the information you have provided here, trying to prove your income as it will be cash in hand work. I would advise you to go the same route as last year by claiming third party support as this is "main" income you receive. You can use the same letter as last year as long as you remember to change the date as some people do forget!

Cole_porter

thanks a lot once more, Poolie. I'll do it as you suggested

Cheers

jay_bee2007

Trawling through 36 pages of posts, I find myself wondering if it was really worth taking these loans out as I now feel very stupid and ignorant and still don't know what to do! I now ask for your patience and HELP! Here's my situation...

In 1996 and 1997 I took out loans totally around £3,360.
Since then I made repayments for 1 year only when I earnt over the deferment threshold and have been deferring ever since. Interest since moving to Thesis shows as c£6.20 per month.

In Sept 2011 I took out a tuition fee / maintenance loan totalling £8,126.55 to study for a year. Since Sept 2012, my starting salary as a teacher is £22,626 (still under the deferment threshold).

The latest letter offers me 3 options:
1) Repay the fixed term loan first (the 1st loan) - presume the 'fixed term' title is bc it can be wiped after 30 years / reaching 50 (both happen in 16 years time).

2) Repay the income contingent loan first (2nd loan) through HMRC and employer.

3) Repay both loans at the same time (not really an option, surely?)

I have about £30k in savings, £20k is debt to my parents which I am repaying slowly whilst earning interest on it - they don't need / want the money in a hurry). I am also about to spend a rather HIDEOUS £15k on my wedding (but let's not talk about that!)

So, what should I do? Presume the 2nd loan will start accruing interest on it in April, but I'm not totally clear. All suggestions gratefully received...

Poolie

jay_bee2007 wrote: »

Trawling through 36 pages of posts, I find myself wondering if it was really worth taking these loans out as I now feel very stupid and ignorant and still don't know what to do! I now ask for your patience and HELP! Here's my situation...

In 1996 and 1997 I took out loans totally around £3,360.
Since then I made repayments for 1 year only when I earnt over the deferment threshold and have been deferring ever since. Interest since moving to Thesis shows as c£6.20 per month.

In Sept 2011 I took out a tuition fee / maintenance loan totalling £8,126.55 to study for a year. Since Sept 2012, my starting salary as a teacher is £22,626 (still under the deferment threshold).

The latest letter offers me 3 options:
1) Repay the fixed term loan first (the 1st loan) - presume the 'fixed term' title is bc it can be wiped after 30 years / reaching 50 (both happen in 16 years time).

2) Repay the income contingent loan first (2nd loan) through HMRC and employer.

3) Repay both loans at the same time (not really an option, surely?)

I have about £30k in savings, £20k is debt to my parents which I am repaying slowly whilst earning interest on it - they don't need / want the money in a hurry). I am also about to spend a rather HIDEOUS £15k on my wedding (but let's not talk about that!)

So, what should I do? Presume the 2nd loan will start accruing interest on it in April, but I'm not totally clear. All suggestions gratefully received...

Your 2011 loan has been accruing interest from the moment the first instalment was paid to you in September 2011 at a rate of 1.5%.

Given this loan will enter repayment in April 2012 and you are over the £15,000 threshold and therefore liable for repayment option 2 is the only option available to you.

This would mean your 1996/1997 loans would need to be deferred every year if you are below this threshold.

dhil1on

A bit confused,
I started higher education in 2005 September and finished in July 2008, I then took on another undergraduate degree staring September 2008 and will be finishing next July (touch wood).

I understand my repayments will follow the same rules I.e. earn over 15k etc.
But how will my loan stand in terms of being wiped out if not paid during 30 years? I had a read and understand this rule began in 2006?
Can anybody clarify this?

Thank you

Poolie

The terms and conditions regarding the permanent wiping of your loan will be subject terms you signed in September 2005 for the 2005-2008 loan.

The loan in 2008, was this for a course you transferred or started fresh, it may be subject to the terms you signed in September 2008.

dhil1on

Poolie wrote: »

The terms and conditions regarding the permanent wiping of your loan will be subject terms you signed in September 2005 for the 2005-2008 loan.

The loan in 2008, was this for a course you transferred or started fresh, it may be subject to the terms you signed in September 2008.

Thanks for replying,
It was a fresh course, how would I find the terms I signed?