Student Loan demanding repayment advice/help

Johnny111

Hello everyone,

Few notes about my situation. I started a foundation degree course in September 2009. I didn't like it, and felt it wasn't the right course for me, so I stuck at it, but eventually left in March 2010.

I was going to carry on for at least the year, but I decided I was going to pursue the option of going to the USA on a "Soccer Scholarship", to play at a high level whilst getting my degree. Everything has gone very well with the US, and I have already been to visit one interested university in Florida, and I am going in July again, to hopefully sort out a package that will allow me to be able to afford to go over there in September or in the spring season.

I spoke to student finance and they said not to worry, I will have to pay back the moneyonce im earning over £15,000 etc. I have just spent all my money on flights to Florida in July which cost me nearly £800. The rest which is about £500, I need to save for visa's, travel insurance, books etc. I will also be selling my car to pay for the remainder of tution fees in the US.

I have recently received a few letters from Student Finance telling me they are reaassesing my loan. I received tution fee loans and maintainance loans of 3 X £900.

I have received a letter this morning saying I have been paid £2763 and received an overpayment of £1160. I have seven days to pay it.
Do I have to pay it? Should I pay it? I can't afford it. I am coaching children but most of the money goes on bills etc, and I need to save for the US.

I don't know how they have calculated it, or why I can't just pay it back with the rest of my tuition fees. I noticed they didn't reassess the tuition fee loan, but for some reason have decided to change my maintainance loan.
Any help/advice would be appreciated.
Thanks

CLAPTON

if you left in march then you were not entitled to the third loan payment and maybe some of the second; they are presumably asking for that back.
why not speak to them and explain the situation.

MrsManda

Tuition fee loan is different because that has to be paid to the university regardless as that is what has been committed. Whereas you have taken money which you are not entitled to and it is understandable that the SLC want it back. You surely knew that you weren't entitled to the last payment as you had withdrawn from the course. They've reassesed your maintanence loan because you no longer are entitled to maintenance. If you left in March you weren't entitled to your last payment of £900 and also at least 1/3 of your previous payment as that is to cover from January to April. Hence the requirement to return £1160. You need to contact them and see if you can come to an agreement. They make allow you to pay them back in installments or add it to your other loans but as you are saving money you cannot claim that you would be in financial hardship if you paid it back.

One other thing to think about is that now you have left university you will be eligible to pay back your student loans from April.

Johnny111

Thanks for the replies.

I understand I wasn't eligible for the third payment. I assumed they would allow me to have it and just add it onto the other loans. They say they have been down as leaving on March 12th, but they paid me £900 on March 19th. Maybe it was stupid on my part, but I needed to use that money for flights to visit a university in the US.

I am not saving money to buy a new car, go on holiday etc. Im only 19, and every single penny I am earning is and has been saved to hopefully finance getting over to the US to study my degree and play "Soccer" (Football).

Im not in financial hardship as such, but if I was to have to pay the money back in the near future, then that would pretty much end my chances of getting to the US. Right now I have £500 in my account. As soon as I get up to £700 I will be paying for flights and have £0 in my account so money is very short.

I will write them a letter now and hopefully they can add it onto the other loans.

ILW

Johnny111 wrote: »

Thanks for the replies.

I understand I wasn't eligible for the third payment. I assumed they would allow me to have it and just add it onto the other loans. They say they have been down as leaving on March 12th, but they paid me £900 on March 19th. Maybe it was stupid on my part, but I needed to use that money for flights to visit a university in the US.

I am not saving money to buy a new car, go on holiday etc. Im only 19, and every single penny I am earning is and has been saved to hopefully finance getting over to the US to study my degree and play "Soccer" (Football).

Im not in financial hardship as such, but if I was to have to pay the money back in the near future, then that would pretty much end my chances of getting to the US. Right now I have £500 in my account. As soon as I get up to £700 I will be paying for flights and have £0 in my account so money is very short.

I will write them a letter now and hopefully they can add it onto the other loans.

This may sound a little blunt, but the maintenance loan is for what it says, living expenses whilst studying. It is not for flying the Atlantic. They have every right to want the money back and I think you know that.

Johnny111

No I completely understand what you are saying. When I was at uni, I was spending £20 a week on petrol getting to and from uni. I was also working to the early hours every week in a bar for extra money. On top of that with phone bills, car insurance, the money starts to add up and go quickly.

I was put in a position where I had to book flights and go to the US on a certain date. I had the money in my account, that I thought would have been added onto the rest of the tuition fee loans. Having to go into debt for £3500 for tuition fees to pay for a foundation degree at the same college I went to, run by the same tutors that taught me at college I think is unfair.

I didn't spend the maintenance loan on new car wheels, or alcohol like the majority of students do.

All im trying to do is get a decent education in the US whilst having the opportunity to progress in football and a possible professional career in football in the US.

Johnny111

To put it simply regardless of what has gone on before etc etc, If I have to pay back the money in the next few months, I won't be able to study a degree in the US.

For whatever reason I don't think I will or want to attend univeristy in the UK again. I am sure the £1000 won't have to much affect on the student loan companies finances, whether they get the money back now or in ten years doesn't really make a difference to them. To me it could be the factor in being successful in life- education wise and continuing my football career.

carriefinnfinn

I was in a position with a car company where they wanted a large amount of money from me- the detail's irrelvant here but it was unexpected and I knew I wouldn't be able to pay on the date they expected.
I contacted a debt counselling service (can't remember which one now but they were very good) and they advised me to write to the company and:

- explain that I was not clear on the terms and conditions of the loan and that I did not have the funds available at the time of writing.

- outline three or four different options on how I could pay the money back, as I wasn't going to be able to pay it all on that date.

This kept communication open and flexible and they accepted one of the options I had put towards them.

At the end of the day, they want the money back, if it takes a little longer than anticipated I don't think they will mind as long as they can see that you're being responsible about it.