In an IVA and student loans have deducted money from my salary

hunnybee

Hi all,

My IVA was accepted last month and I have already made my first payment, second to be made tomorrow. When I got my payslip this month, my student loan deduction has been taken from my pay. I know the student loan company voted against the IVA proposal but they are bound by it because the majority voted on favour.

Does anyone know what happens from here? Will I get my money back? I have emailed my case officer but haven't heard back yet. I'm really stressed about this as money is already extremely tight this month, without more being taken when it shouldn't be!

Thanks you!

james32_uk

A few years ago when I took out an IVA any Student Loan legally had to be included in the agreement and after a few months and several calls to the SLC they cancelled future payments and refunded me the money they had taken since the IVA was set up.

However I believe that now Student Loans are exempt from IVAs and therefore you will continue having to pay this as per the original agreement. You need to speak to your case officer to confirm all this. Obviously your SL repayments should be allowed for in your income/expenditure budget.

Oldernotwiser

Student Loans are exempt from both IVA and bankruptcy, as far as I know.

shelene

Hi,

I am 3 1/2 years inton my IVA and my student loan was taken in with my IVA, i am not aware at what point this new rule about them being exempt came in.
They continued to take payments - every month i faxed over my wage slip with my deduction for my student loan then they returned the monies back to me via my IVA company, till eventually they stopped taking it. ( I was doing this for about 6 months)

Best to ring up your IP to ask if it should be taken or not, then chase up student loans if not.

AJS71

Eek - hadn't even considered the student loan as I was asked for my net pay, and the repayments were calculated from that, so the student loan had already been deducted. They have my wage slips, so they should have realised if there was a problem.

Shall ask when the chappie phones on Tuesday (IVA being set up right now) so I will let you know what he said - can't get more up-to-date than that!

AJS71

Hi again

I was told that Student Loans ARE exempt from IVA.

As SL are deducted from your wages at source, and the monthly IVA repayment is calculated from your Net pay (after all deductions like National Insurance etc) this should not be a financial burden, and NOT included in your monthly expenditure but the SL SHOULD have been noted in the original agreement you signed when the IVA became active.

As a bonus, you are paying off your student loan alongside the debt repayments (and your payslip is the same as it has always been), so that after the IVA is finished you will have reduced your student loan as well without really noticing.