Student Loans Advice - Petrified!

Butterfly_Collector_2

Hi people,

I need some advice and would appreciate anybody's help.

I finished my degree in 2003 and failed to make any payments on my student loan I recieved an annual statement at my parents house but none of my employers took the tax from me. I won't go into the reasons for not paying it off but I know I've been a naughty boy in that regard and had other debts to pay off were the debtor was a bit more aggressive than the SLC. In essence I've just prioritised the debts I have.

I moved abroad in December to work. I am in two minds with the SLC whether to give them a call and ask them if I can make a lump sum payment (of about 25% of what I think I owe them) or wait until I recieve my annual statement later this year and then give them a call to see whether they will accept a 'without prejudice' lump sum payment to clear the balance.

My question is would they be willing to play ball on the offer to make a without prejudice one off payment? I am having panic attacks over this as I am absolutely petrified that I might be charged 3 x or 4x the interest I owe and that I may be penalised hugely on the amount I owe given the fact I've not contacted them whatsoever and moved abroad last year.

If I make a one-off lump sum payment is that likely to have any repercussions with the HMRC notwithstanding the offer is without prejudice? Will the offer of a one off lump sum payment wash with them?

I believe the SLC can be quite abrasive and on reading advice on other forums the situation has got me petrified. I've been guilty of burying my head in the sand when I was younger and now I just want to pay it off!

I've had problems and started to get my life in order and this is just so frightening. Does anybody have any level headed advice on here and has anybody dealt with the Student Loans Company before?

Or is this an issue for my 'local' Citizens Advice Bureau?

Help much appreciated.

Thanks

EdGasket

So long as you pay off the loan I don't see what the problem is? Why exactly are you frightened?

Raggs_2

I contacted the SLC after being abroad for almost a year, apologised I hadn't done it earlier, on the basis of ignorance, and wanted to inform them of my new address and that I was starting work. I had had no contact with them since I left uni 5 years ago.

They sent me the forms, I filled them out, and it was determined I wasn't earning enough for now.

Don't panic, they've been fine with me each time I've called.

As for the one off payment at the moment the interest rate should be quite low I believe? Or has that changed? If it's still low, you're better off holding on to the money.

They will never complain (at least I doubt it) if you offer to pay some back, but they will want to know your work details (and once it's started they then seem to track you yearly).

Again, they were fine with me, just be apologetic, polite and cooperative with what they tell you you need to do.

vaporate

I don'y know why you are !!!!ing your pants.

Just let them know your details, bank details, curent address etc.

I wont be paying my loan off and i couldnt give a hoot. All legal.

andymc29

I wont be paying my loan off and i couldnt give a hoot. All legal.

You're an example to us all, if only everyone ignored they're loans. that way we cna destroy the finaincial sector even quicker and all be totally screwed.
Don't listen to tthis guy. I'm sorry but you borrowed the money so of cause you have to pay it off, otherwise you're just stealing from tax payers. I'm paying my loan off and would be appalled to think people would decide it's fine not to

DarkConvict

The threshold for paying back SLC depends on what country you are in, just give them a bell tell them you are now working and are in country x, please send me out the forms to fill in.

Wait for their response, Simples *Squeak. (sorry CTM TV advert)

I doubt they will accept a lumpsum to pay off the entire debt, they will want it repayed in full and will be willing to take a % of your salary per month when it is high enough until its repayed in full.

Taking a stab at it, £3000 a year, 3 years, so £9000. at roughly 2-3% apr (cheap loans) the balence is about £10-12,000 over the last 7 years.
As i was really ill in my 1st year i had to resit so am on about £12,000 aswell.
Just think about the new students, £3000 loan + £3000 tuition loan too a year.

Raggs_2

London weighting here, 3 years of 5000+ a year, now 5 years later (roughly) it stands somewhere around 18k.

It's not even a straight percentage of your earnings they take. It's a percentage of earnings over the limit.

So if it was 15000 limit, they take 9% of whatever you earn over that. So 16000 would be 90 pounds (that's how I understood it at least).