Selling student loan debt to other company?

newsmonkey

Might have been dreaming this, but I'm sure I've heard of people with student loans from years ago finding that the money is no longer owed to the SLC but to another company instead, which has "bought" the debt and is now in charge of collecting it.

Can anyone shed any light on this? Do the rates remain the same? What years have been affected by this?

P.

Charlton_Taz

This happened to my student loans.....1996-1999 (now I'm feeling old!). Makes no difference to you...the interest is still pegged to the RPI index or whatever it was...and they sorted all the DDs without you needing to do anything.

[Deleted User]

the loans were sold to lombard tricity finance and Deutsche Bank...

as the post above says, its another method of collection and doesnt affect the amount the borrower pays back.

Timon

DrFluffy

My student loan from my final year of first degree (only took out one during my first degree) was sold to another company. No difference in terms etc, you just pay back to someone else...

Everest

The sale of loans to other companies is a very common thing in the finance industry. In the case of the SLC this simply frees up the money they are owed in order that they may lend more money out to new students. The same thing is done with mortgages: banks and building societies bundle up loads of mortgage loans and sell them to investors. The banks will then continue to manage the repayments from the debtors and pass on the repayment and interest to the investors who have bought the loans mortgages. Both sides generally remain bound by the covenants of the debt: these would stipulate how interest is calculated (student loan based on Retail price index) and how it is to be repaid. Nothing to worry about, and shouldn't affect your decision to take out a loan or not.

Odyssy

I posted this:

(sorry can't find how to do the quote thing on here)
My daughter had one of the 'old' style student loans around the mid to late nineties and then one of the newer type for the later part of her degree course. As far as I can remember, the transition beween the 2 kinds and the difference between the repayment terms and salary thresholds were quite complex. I don't remember the exact dates and never knew the amounts.
She's moved addresses several times and never earned more than about £13,000, she's never made any repayments, and she's deferred the loan a few times as required.
The problem seems to be that when she last moved she sent the deferral forms with her change of address.

There then seems to have been several exchanges along the lines of 'You've not sent us your deferral forms'.
'Yes I have, they were with my letter to you informing you of my new address, to which you have just sent me a letter telling me that you you haven't received them.'

There then seemed to be a silence, until we (as one of her contact addresses) started getting phone calls from a company called The Logic Group, asking about my daughters whereabouts, could I confirm that her phone number ends in XXX and her address is at number XX (both were correct) and when questioned why they were calling, said it was about collecting the arrears of her student loan repayments.

I told them to write to her. They said get her to call us (on an 0870 number). They have since called her other contact (an 85 year old relative) three times, tried here again (my wife sent them away with a flea in their ear) and on each occasion been told to write to her.

I found the company details on the web :- http://www.logicgroupplc.com/Services_Home.html

They have now (after several weeks) written to her about this and mentioned getting local collectors to call.

From an entirely different source, I have been told that the SLC is 'quite good at losing deferral forms'. As my daughter has been unemployed for several months and is struggling to survive, she is now getting worried and increasingly angry.

Sorry for the long post, but could someone confirm (or otherwise) if the SLC is selling its debts for collection? And what we should do about it.
[end of quote]

- a few weeks ago without any relevant replies. have since spoken to one of the operatives at Logic group about the problem.

I was told that the debt has not been sold, but the company is employed by the SLC to collect 'outstanding' monies. If they fail then it goes to another collection agency to start from scratch. When I explained the situation, he told me thay have no background information, only the name, amount outstanding and contact details. He told me she should contact the SLC, but that they would probably refer her straight back to them (Logic Group).
The best he could offer was that he could mediate between my daughter & the SLC.
He did sound a bit p*****d off, caught between a rock and the SLC.

Not very promising, especially in the light of what's revealed in this thread

http://forums.moneysavingexpert.com/showthread.html?t=188491

Another government c*** up.

beefturnmail

My girlfriend has been having a similar problem, regarding payments going missing. First informed them of this in November. Still not sorted out 7 months later. SLC claim they recieve the info from the inland revenue and they've messed up so we've sent a letter of complaint to both the SLC and the inland revenue informing them that we are holding them both jointly responsible for the account mis-management and to sort it out ASAP.

I personally have not received a statement since I began repaying. Have just written to them informing of a change of address and asked for a statement at the same time. I'm 90% certain this will be incorrect if and when it arrives! From my experience both the SLC and the inland revenue are worse for mistakes than any private organisation I've dealt with

beefturnmail

sorry, have just realised that I should have posted my reply on the thread given by Odyssys link. I've moved it there now, but don't know how to get rid of it from this thread

GiveItBack

Odyssy

how has this turned out? Resolved yet?