Repaying Student Loans 2009/10 guide discussion

Char6

Hi will repaying my student loan help improve my credit rating? Does it show up when they carry out credit searches?

I studied 2002-2005 and have no other loans.

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, again.

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 until very recently.

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 allright and they weren't expecting any payments from me for the next year. Good.

I just got this year's new form to fill and I have some questions.
Since around october, I've been working part-time (just 3 hours a week) teaching english lessons in a small learning centre for seniors.

The thing is that I don't know what to include with my Overseas Income form, because my payslips are, obviously, in Italian. Do I need to officially translate those? Also, I didn't notify the Student Loan company when I started my new job because the pay is so low that I didn't even think about it...It's like 130 euros per month after taxes. Could that be a problem? I know I'm under the threshold so I guess wouldn't have to worry, but I am a bit confused.

My idea would be to update my situation with them just by telling the truth, that I'm currently in employment, part-time, and still getting support from family. But I don't know if the proof I have, meaning the payslips, is gonna be good for them.

any ideas?

Thanks a lot in advance. It's great to read you Poolie year after year. Your massive help is greatly appreciated.

Copies of the payslips are fine if you can show the gross amount you receive (ie before tax). As you will be below the threshold, they will not expect any payment again this year. I would also include a letter saying it is part time and you are supported by family with another letter like last year.

That should do the trick.

Poolie

Beverley wrote: »

Hello font of all knowledge :-)

I took out student loans in 97, 98, 99 and 2000. As a single parent working part time and looking after a sick child I've always deferred repayments.

I'll be 50 in September this year and, from what I can see, the loan will then be cleared for me.

However, I've just come across a job opportunity which, if I get it, will take me over the threshold and means I'll have to start repaying the debt.

If I begin to repay the debt, am I then liable for the whole amount (currently around £9.6k) or do the repayments stop in September when I turn 50?

Thanks

This is not my area of expertise, but would be liable for the full outstanding balance until it is cleared when you reach 50 if that the is agreement you signed under.

Worth giving SLC a call to confirm though.

Poolie

Char6 wrote: »

Hi will repaying my student loan help improve my credit rating? Does it show up when they carry out credit searches?

I studied 2002-2005 and have no other loans.

Student Loans at the moment do not appear on credit searches. There were plans for them to put onto credit searches if you are in arrears which is unlikely if you are meant to pay back through your salary.

Beverley

Poolie wrote: »

This is not my area of expertise, but would be liable for the full outstanding balance until it is cleared when you reach 50 if that the is agreement you signed under.

Worth giving SLC a call to confirm though.

Thanks. I called as you suggested and was told that I'm due to defer in April and that deferrment will last for one year (regardless of whether my income rises during that year). The loan will then be wiped at the end of my birthday month so I'll be debt free by Spetember of this year.

Cole_porter

Poolie wrote: »

Copies of the payslips are fine if you can show the gross amount you receive (ie before tax). As you will be below the threshold, they will not expect any payment again this year. I would also include a letter saying it is part time and you are supported by family with another letter like last year.

That should do the trick.

Thanks a lot Poolie, as always.

Two more questions:
How many payslips you think are necessary?
Also, do you think they can get upset because I didn't notify them when I started to work last october?

cheers!

Poolie

I would send at least 3 months worth of payslips so they can get the average correct if there is any change in your monthly salary.

not sure, they might not do anything or they could impose a fine. Not sure of the rules these days.

Cole_porter

Ok. Thanks very much Poolie.

gazmoore77

CollinF wrote: »

I do not get it why this is even a matter of a discussion. Student loan has to be repaid. I do understand that education is a pricey thing, interest rate might be a little bit challenging. But once upon a time you signed yourself to a loan. So be so kind and repay it. You know, I like to compare student loans with smaller loan called payday loans online with ameriloan. If you are not sure you can pay everything back, then stay away from this service.

I think you're missing the point here - the pre 98 loans were lent on the general understanding that if you didn't earn more than the national average wage you would not have to repay it and it would be written off on your 50th birthday. They are NOTHING like payday loans. The loans have now been sold off to private companies and they are using loopholes to force repayment. I'm sure there are many out there like me who would not have taken the loans out if we'd known what would happen.

Seeking_the_black

Hi,

I have a post-1998 loan and moved to the States with work 4 years ago. Due to exchange costs I would usually let my loan go into arrears and then transfer money back every 3 months to clear them.

I have just been made redundant but I am remaining in the States with my wife. I filled in an overseas assessment form to state I would not be earning money but my arrears have still increased and the SLC has handed my account over to Transcom (a debt collection agency). My questions are:

1. I have not informed the SLC I am married (it happened after I filled the assessment form in) - would they hold my wife accountable for paying if they knew? Am I obligated to inform them?
2. Does debt with Transcom affect my credit rating back in the UK?
3. SLC wants evidence I am unemployed - can I have my wife sign the letter saying she is supporting me without informing them we are married - she hasn't legally changed her name yet (linked to number 1)
4. The income assessment form I filled in was dated when I learnt I would be made unemployed but I worked for another 3 months at the company - do I have to disclose this to SLC?

To clarify - I'm not against repaying and do attend to repay my loan in full.

Thanks