Negotiating with SLC

Digsy00

Hi All
My wife has about £5k outstanding with the SLC. They are fixed term loans. She works part time and isn't likely to earn more than the earning limit. Has anyone negotiated with the SLC to make a partial repayment as full and final settlement. I was thinking of offering around £2500.

Any suggestions welcome.
Regards

Poolie

Why does she not just apply for deferment since she is under the threshold. SLC will not accept any full and final settlement unless you are in severe arrears.

whitfreak

Unless I'm missing something why do you need to? Then again I didnt think any SLC loans were fixed term.

On the old style loans you attempt to make 60 or 84 (depending how many loans you took out), but if you earn below the theshold you can defer and you can defer indefinately. And eventually it gets written off. You just have to make sure you do the paper work intime for defering each year.

Digsy00

Hi
Sorry I should have said that she has been deferring already. We have no arrears. She would have another 13 years before it was written off at 50.
The reason for this would be that its not hanging over us any more.

marywooyeah

payment of a lesser sum can never discharge a debt, even if they did accept it they could ask for the rest at any time, the only way you would be able to defend against that would be the defence of promissory estoppel, which is hard to prove. why dont you just try to negoiate lower payments over a longer period?

Oldernotwiser

Why do you feel that it's hanging over you?

If she starts to earn the good salary that would mean paying it back then you'll be able to afford it; until then, just keep deferring.

Digsy00

We don't have to make any payments, as my wife earns good money, but is part time and therefore doesn't earn the 27k that is needed to trigger the payments. As we don't expect her to earn over that amount we won't pay the loan back at all. I was hoping that they might consider accepting a partial payment of the loan as full and final so at least they get something back rather than nothing.

Payment of a lesser sum can discharge a debt if the lender grants settlement.

Oldernotwiser

Digsy00 wrote: »

We don't have to make any payments, as my wife earns good money, but is part time and therefore doesn't earn the 27k that is needed to trigger the payments. As we don't expect her to earn over that amount we won't pay the loan back at all. I was hoping that they might consider accepting a partial payment of the loan as full and final so at least they get something back rather than nothing.

Payment of a lesser sum can discharge a debt if the lender grants settlement.

I'm sorry, I really don't see your problem. If she isn't likely to earn over this amount (for whatever reason) she can defer until the loan's wiped off.

I just don't understand why you would want to hand over money when you don't need to!

bestpud

As far as I am aware, student debt won't affect any other credit you may apply for so I can't see how it is hanging over you.

If you can afford it, and it pricks your conscience that much, then just repay the lot!

bhavinshah

why would anyone want to pay off a loan when they don't have to...?

nothing's "hanging over" you if you don't think you're going to exceed threshold anyway.

FatratUK

Someone i know who had just finished university went to take out a mortgage and what was said above was also said to her. Anything you owe for student loans doesn't count as regular debt in your credit score, etc. So as everyone else has said, aside from having to defer it (every year?), i can't see what the big hassle is. And if it really is a big hassle, just pay the extra £2.5k that you were planning on doing.

Or pay me £2.5k and i'll write up and send you 13 deferrement letters, ready to mail to the SLC, if it's such a hassle. Deal?