Honours Student Loans

Hazzanet

I lost my temper with HSL about three years ago. I was paying my loan to the SLC and then suddenly, the DD changed to HSL. Not recognising the DD, I cancelled it and had it returned unpaid.

2 things:

1. I was never told that the loan was being taken over by HSL, and
2. I still have a letter saying that my loan was NOT part of the sale in 1999.

To cut a long story short, I paid the outstanding balance there and then (only about £500 at the time), and that was the end of that.

The following April, I received a statement saying £0.00 outstanding.

Hazza

steveimp

I wasn't told either that my loan was being moved to another company.

The SLC are extremely unhelpful when trying to discuss anything to do with this with them as "it's nothing to do with them anymore".

steveimp

An update - got a call from Pennine Debt Recovery this morning threatening bailiffs. Administration of Justice Act as regards chasing debts that do not exist, anyone?

steveimp

Another update - they have now refunded me the entire amount paid to clear the loan and want me to pay it month by month instead! HSL, what is it with these people?

Bargain_Babe-a-Licious!

!!! No wonder I am terrified of taking a (MUCH NEEDED) loan w/ SLC... already, i can't seem to get hold of people when I have questions - It's like trying to bag fog!

I would take a free 1 hour of advice from a solicitor if I were you.

AddieH

You shouldn't be discouraged from taking out a loan if you need one that is what the system is there for. The Government does intend changes in the way student finance is delivered to improve it, particularly with a focus on the important people, the customers of the system i.e. students and those repaying loans! - http://www.dfes.gov.uk/pns/DisplayPN.cgi?pn_id=2006_0093

If you are having difficulty with HSL or the SLC in repaying your student loan and have been through the complaint resolution channels they suggest there are other options.

moneyandmountains

steveimp wrote:

An update - got a call from Pennine Debt Recovery this morning threatening bailiffs. Administration of Justice Act as regards chasing debts that do not exist, anyone?

In the short term, I would contact you local Citizens Advice Bureau. They will be able to give you free legal advice and hopefully put the baliffs off whilst you pursue your complaint with the Financial Ombudsman.

I would suggest the you ring the debt recovery company. They should be used to companies screwing up. It happens more often than you would think.

In the advent the baliffs turn up, do not let them in your house whatever they say. They have no right of entry unless they are accompanied by the police, and in possession of a warrant.

exil

Technically you are in breach of contract. However they should really negotiate with you (you will still owe them SOME money for lost interest, ie by paying early you pay them less interest than what they are entitled to receive by the terms of the contract) rather than acting like loan sharks.

simongregson

Can I just repeat that it is simply not true that you need to pay the loans over the full term. The terms of your agreement with the SLC state that you can repay the loans at any time. If you have the original terms of the agreement then take them to the CAB for more advice. From what I remember the terms and conditions for student loans specifically stated that they could NOT be changed later. You have not signed a new agreement with these moneygrabbing vultures that the loan has been sold on to; they do not have the right to vary the terms!

Perhaps phone them up and ask for a redemption figure at todays date (which should not include interest past the date of settlement, as that is what the original agreement says).

Incidently my student loans do not show up on my credit report. Again, check the terms and conditions as you may not have agreed to share data with a credit reference agency regarding them, so unless they took you to court to try and obtain a CCJ (which they wouldn't be able to as you have attempted to pay!) they may well have no impact on your credit file.

Do obtain more advice with the loan agreement in fromt of you as I am remebering all this back from 1997 when I signed for my loans, and I don't have the paperwork inf ront of me now (wishing I'd kept it after reading this story!)

Simon.

rjt_2

After reading this thread, I dug out my student loans paperwork for my loans, which were taken out between 94 & 98. Here's what it says on my credit agreement with the SLC:

"7. Early Repayment
You are entitled at any time to discharge your indebtedness under this Agreement by written notice to us and the payment to us of the outstanding balance of the Loan including interest down to the date of such payment. You may obtain a written settlement statement from us on request. We will also accept at any time repayments which are larger than the monthly repayments you are obliged to make at that time."

I also have a sheet titled "The Education (Student Loans) Regulations 1988 Made under The Education (Student Loans) Act 1990" which says:

"8. The borrower can at any time prepay any or all of the loan without penalty. If he wants to repay the loan in full he can ask the lender for a written statement telling him the exact amount he needs to repay. If he makes a prepayment of part of the loan the lender will not change the borrower's monthly repayment amount until the September which follows the prepayment."

As previously pointed out, Honours cannot change these terms and student loans do not appear on credit files.