Not been paying my student loan

RGE08

I moved house 2 years ago when I was under the £15,000 threshold. For the last 2 financial years I have been earning over the amount but because I forget to inform the SLC of my change of address, the statements have been going there which in turn means I have simply forgotten to let my employer know which means payments have not been made for a 2 year period.

I have informed the SLC company in a letter but been told to wait 7 days.

What will happen? Will I go to prison?

castortroy28

hey there...

Go to prison? I dont think so. I had the same kinda thing a few years back so. All that happens is that they will start taking out the money now.

When I first graduated they didnt start taking the money out for the first two years. In theory your employer should tell them.

Its not like you never intended to pay back the money is it?

Dont worry they will take it out from now but as far as I believe there should be no problem with any other trouble you could get into.

Regards,

Cas

RGE08

I'd like to thank you for putting my mind at rest. The prison bit was to add a little bit of light heartedness on the situation!

I think the wose case scenario is they hit me with a bill for the missed payments over the last 2 years...be a grand and a half at worse.

Thanks again Cas.

castortroy28

RGE08 wrote: »

I'd like to thank you for putting my mind at rest. The prison bit was to add a little bit of light heartedness on the situation!

I think the wose case scenario is they hit me with a bill for the missed payments over the last 2 years...be a grand and a half at worse.

Thanks again Cas.

No problem.. I HATE STUDENT LOAN COMPANY!!!

they are the worst company of all time. I paid them off recently and they still were charging me!

In the years that you have missed payments they were earning interest on the amount you owed so. And bear in mind this is compound interest down on a monthly basis.

So say for example you owed them 100 pounds. If you dont pay off any of that and say the interest rate is 5% then you owe 105 after the first month, then the second month will be 110.25.

The funny thing is that when i started paying them off I was earning so little that my minimum payments didnt cover the interest they were charging! so the amount i owed them actually went up the first couple of years...

robin_banks

RGE08 wrote: »

I moved house 2 years ago when I was under the £15,000 threshold. For the last 2 financial years I have been earning over the amount but because I forget to inform the SLC of my change of address, the statements have been going there which in turn means I have simply forgotten to let my employer know which means payments have not been made for a 2 year period.

I have informed the SLC company in a letter but been told to wait 7 days.

What will happen? Will I go to prison?

I'd check to see if they haven't slapped a CCJ on you. If they have I'd have little sympathy.

Lokolo

castortroy28 wrote: »

No problem.. I HATE STUDENT LOAN COMPANY!!!

they are the worst company of all time. I paid them off recently and they still were charging me!

In the years that you have missed payments they were earning interest on the amount you owed so. And bear in mind this is compound interest down on a monthly basis.

So say for example you owed them 100 pounds. If you dont pay off any of that and say the interest rate is 5% then you owe 105 after the first month, then the second month will be 110.25.

The funny thing is that when i started paying them off I was earning so little that my minimum payments didnt cover the interest they were charging! so the amount i owed them actually went up the first couple of years...

Not quite.......

Lokolo

RGE08 wrote: »

I moved house 2 years ago when I was under the £15,000 threshold. For the last 2 financial years I have been earning over the amount but because I forget to inform the SLC of my change of address, the statements have been going there which in turn means I have simply forgotten to let my employer know which means payments have not been made for a 2 year period.

I have informed the SLC company in a letter but been told to wait 7 days.

What will happen? Will I go to prison?

You might get asked for a backpayment. You'll have to wait to see what they say.

You can work out how much you should have paid back though.

Salary over the past 2 years. 9% of that over £15k. Thats how much you should have paid back. I suspect it won't be huge amounts unless you are on £30k+