Repaying Student Loans 2009/10 guide discussion

Poolie

Seeking_the_black wrote: »

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

1 - SLC do not need to know you are married, the debt is your own personal debt.
2 - Not sure
3 - Yes, you can get your wife to provide a signed letter stating she is supporting you.
4 - You should disclose this to SLC, but they will reassess you for another 12 months. Best to put the letter in from your wife till you are working again.

amebb

I need some advice please regarding my student loans that i took out when i was at uni back in 1997 ish....

I am getting harrasing phone calls from debt collectors forcing me to make a payment that i cannot keep to or afford.

I am a career and earn about £400.00 every month. That is about £4800 annually.

If you take in to consideration my out goings, credit cards, bills, food, utility bills etc etc etc i have very little money left over at the end of the week.

I also have 3 children under the age of 6.

The debt collecters have failed to listen to me and are causing me lots of stress.

I have never earned over £5000.00 annually.

Speaking to the student loan company is like talking to a brick wall. They are very unhelpful to say the least !

I understand i need to repay this debt but not really sure how i can manage to do so.

Can anyone help and advice me on how i can make the student loan company listen to me and what shall i do with the debt collectors ??

Thanks

drussmonkey

One of the aspects of the current article that Martin doesn't even mention is cashflow. One of the arguments to paying off your loan early is that it will free up more money in your monthly cashflow that isn't going on loan repayments.

Yes, over the long term, this is not the best thing when you're repaying at 1.5%, but people don't generally base their finances on what is most efficient over the space of 10 years, but rather what they can afford month to month.

I'd at least make the point that while it might be not overall the most efficient option, overpaying and clearing the loan while the sun shines in order to free up future monthly cashflow is at least something that should be considered.

jrh2254

My daughter has two income contingent loans. This is because she completed her degree under the old loan scheme where the interest rate was 1.5% and then started another course last Sept where the interest rate is 6.6%

So plan1 is at 1.5% with a balance of circa £21,000 and
plan 2 is at 6.6% with a balance of circa £7,000

I want to pay off the loan with an interest rate of 6.6% and leave the one with an interest rate of 1.5%

If I make a voluntary payment at the student loans repayment website which loan does it deduct the voluntary payment from? Its not very clear on the website.
Clearly I want to pay off the 6.6% interest rate loan first!

Many thanks.

John.

Dunroamin

amebb wrote: »

I need some advice please regarding my student loans that i took out when i was at uni back in 1997 ish....

I am getting harrasing phone calls from debt collectors forcing me to make a payment that i cannot keep to or afford.

I am a career and earn about £400.00 every month. That is about £4800 annually.

If you take in to consideration my out goings, credit cards, bills, food, utility bills etc etc etc i have very little money left over at the end of the week.

I also have 3 children under the age of 6.

The debt collecters have failed to listen to me and are causing me lots of stress.

I have never earned over £5000.00 annually.

Speaking to the student loan company is like talking to a brick wall. They are very unhelpful to say the least !

I understand i need to repay this debt but not really sure how i can manage to do so.

Can anyone help and advice me on how i can make the student loan company listen to me and what shall i do with the debt collectors ??

Thanks

Have you completed the deferral forms at the right time?

Dunroamin

drussmonkey wrote: »

One of the aspects of the current article that Martin doesn't even mention is cashflow. One of the arguments to paying off your loan early is that it will free up more money in your monthly cashflow that isn't going on loan repayments.

Yes, over the long term, this is not the best thing when you're repaying at 1.5%, but people don't generally base their finances on what is most efficient over the space of 10 years, but rather what they can afford month to month.

I'd at least make the point that while it might be not overall the most efficient option, overpaying and clearing the loan while the sun shines in order to free up future monthly cashflow is at least something that should be considered.

You could, of course, put the money from your good times in an interest bearing account so that it's available for loan repayments when/if the bad times arrive.

Poolie

jrh2254 wrote: »

My daughter has two income contingent loans. This is because she completed her degree under the old loan scheme where the interest rate was 1.5% and then started another course last Sept where the interest rate is 6.6%

So plan1 is at 1.5% with a balance of circa £21,000 and
plan 2 is at 6.6% with a balance of circa £7,000

I want to pay off the loan with an interest rate of 6.6% and leave the one with an interest rate of 1.5%

If I make a voluntary payment at the student loans repayment website which loan does it deduct the voluntary payment from? Its not very clear on the website.
Clearly I want to pay off the 6.6% interest rate loan first!

Many thanks.

John.

Hi John,

It ensure it goes to the loan you want, you can always phone SLC and ask them to apply it to the loan. They will not be able to give you any other information about the loans, but they will happily take money from a third party.

jrh2254

Poolie wrote: »

Hi John,

It ensure it goes to the loan you want, you can always phone SLC and ask them to apply it to the loan. They will not be able to give you any other information about the loans, but they will happily take money from a third party.

Thanks, I will give SLC a ring. John.

stumo24

Hi,

My parents have recently received a substantial amount of inheritance money and want to pay off my student loan so that I have no debt to contend with. I started in 2006 and graduated in 2009, and my current total loan figure is £20,075. Having read around on this topic I am not convinced that paying it off in one go is the best or most productive use of that money. For peace of mind it would be great to get it cleared off and repaid but surely it would be more beneficial to hold onto that money and make more interest off it? What would people recommend?

Currently I am pretty much paying off the interest on the loan per year via my salary so the loan amount isn't decreasing at all.

Any advice is much appreciated.

Poolie

Depends if you see the loan as a real deb ie you are going to be paying back through your salary more as a tax than your loan reducing since you are only covering the interest at the moment.

The loan is currently at an interest rate of 1.5%, so you would need to make more through bank interest of the amount your parents are offering you (I would make sure you use your ISA allowance and then find other ways to store the money such as bonds).

Personally, I would put the money away as it would be a good start on a deposit for a property.