Protected Trust Deed - Student Loan Debt Exempt?

Goldfishy

Hi,

I have a Protected Trust Deed which is due to finish at the end of October this year. Recently I have started a new job and my most recent payslip listed £97.00 payment to the Student Loans Company.

I gave them a call and they said that student loans are exempt from the normal creditors terms for a protected trust deed, and that I would be required to pay off the loan. Can anyone confirm if this is indeed correct? I phoned my trustee and he had no idea that this was the case.

My trust deed was set up in October 2006, and the Student Loans Company were one of my biggest creditors who agreed to the deed. Can they go back on their agreement and force me to repay the money, despite my trust deed?

Thanks in advance for any advice.

Regards,

Fish

Nick700

Good afternoon,

Student loans are nowadays excluded from Trust Deeds under an Act of Parliament in 2008.

However, as you took out the trust deed in 2006, and the legislation was only laid down in 2008, I think you should ask the student loan company which legislation they relying on to say they are not included in the trust deed. They had every chance in 2006 to object to the trust deed before it became protected, but they did not. I think it's very unfair if they Student Loans Company try to go back on the terms now, considering they agreed to the trust deed originally.

Let me know how you get on.

Nick

Goldfishy

Hi Nick.

Many thanks for your reply.

My trustee has spend a lot of time this week trying to get to the bottom of this. I'm not too sure how student loan repayments work, but apparently the Inland Revenue are involved and my trustee's queries have been passed on to them. Efficient as ever, the IR has given him an estimated response time of 42 days. Meanwhile, I'll continue to have the money deducted from my wages. I dont earn a huge amount of money, and I will miss the £97 that is being taken.

As you say, the student loans company had plenty of time (6 weeks I believe) to object to the deed becoming protected. This argument I'm sure, will form part of the case that my trustee is kindly building.

I'll post updates on this thread as/if/when things develop.

Best wishes,

Fish

james32_uk

For my IVA in 2006 I was told specifically that it MUST include my Student Loan (I wanted to leave it out as it pushed up my proposal % considerably).

It was difficult to get the SLC to stop taking my payments though eventually it was resolved (took about 3 months) and they sent me a cheque for payments made during this period. I've never made any payments since and they still show up as a creditor on my report so I assume they remain in my IVA as originally agreed.

I dont know if the same applies to a Trust Deed though.