Student Loan

layla21uk

My husband obtained a student loan some years ago, and moved. They recently caught up with him and he owes 5,792.91. He has said he can pay up 3000 in one go and like other debt companies he assumed they could offer a reduction for a large payment.

According to the debt company they cannot offer such a reduction as it is a government loan. he cannont let it go to the stage of a ccj as were moving home shortly and dont want to effect his credit any more.
Can anyone help

[Deleted User]

is this a loan from the 'student loans company' ie. the government, or a bank loan? If it's from the SLC, i had no idea they used other debt companies, the money usually is taken by the inland revinue directly from your PAYE

layla21uk

Its a government loan that is now with someone called JB Debt Recovery of Glasgow

MikeyB_2

ringo_24601 wrote:

is this a loan from the 'student loans company' ie. the government, or a bank loan? If it's from the SLC, i had no idea they used other debt companies, the money usually is taken by the inland revinue directly from your PAYE

I guess it is a mortgage style Student Loan taken out on a course that started before 1998. In which case it could fall into the set of accounts that the Government sold to a private concern

From WikiPedia:

"The UK Government sold off two tranches of debtor accounts in 1998 and 1999 to Finance for Higher Education (FFHE), a company formed by Greenwich NatWest, and Honours Student Loans Company a trading name of Honours Trustee Limited, a private limited company."

I guess it must be HSLC who are after the OP's DH

RabbitMad

Why didn't you OH tell the SLC his new address?
Has he had any communication from them at all prior to this?

It sounds like they have instructed debt collectors due to their inability to trace him.


The following is generic advice re mortgage style loans and Read Martin's article re student loans :
Your OH should be able to pay the loan off in 60 monthly installments. However if he earns less than approx 22K he doesn't have to pay it off yet and can get it defered.

If he has not had any contact from the SLC he should call them up and say something like "I recently was talking to some old friends from uni and one proudly announced he'd finished paying his loan off. This got me thinking etc ..." and set up a regular repayment.

He then calls / writes to debt collecters and says but I am paying this off with the SLC.

As for a reduction in the loan, forget it. He has to pay it all back unless he gets to 50 ish or 25 years after he finished uni (something like that). It should only be accruing interest at about 2.5% a year (what ever inflation is)

hope this help.