Student Loan- Update to question

IDunno

I was rightly called naive/foolish etc by someone. I completely understand that ignorance is no excuse but I was and that was it.

I have looked through my papers and I have seen that in the five years I have not been in the UK I have only earned over the GBP 15,000 threshold for the past 2 years. I understand from the SLC website that that the standard for monthly payments is 9% of what you earn over the threshold of GBP 15,000. So e.g. you earn GBP 3,000 than 15,000, you pay 9% of 3,000 (GBP270) per month.

I am being honest, I know I've been stupid, so please to avoid criticising. I really do want to notify the SLC and start paying back but I genuinely cannot afford to pay back the 9% over the threshold. Please could anybody who knows answer me:

- If I tell them I have been ignorant, should have known, but did not inform them, is it possible they will not enforce any financial penalties other than the interest over the past 5 years? Am I more likely or less likely to face some kind of punishment for being stupid enough not to have notified them?
- Is there anyway whatsoever they are prepared to budge on the 9% of anything earned over the threshhold amount. I have a family and a cut of GBP 250 from my current pay would really be quite devastating.

Thank you all for advice on the above. Again, I assure you I am not someone who is trying to dodge my obligation to pay for the education I received but honestly at that rate it will have a crippling effect on me.

Thank you.

izools

You pay 9% of £3,000 per year.

So if you earn £3,000 more than the threshold per year then you will pay £22.50 PCM, as that is 9% of your monthly earnings over the threshold

Taiko

If you're overseas, it's not 9% of anything over £15,000. It's 9% of your earnings over the repayment threshold of the country you were living in.

Details here: http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867143&_dad=portal&_schema=PORTAL

IDunno

Taiko wrote: »

If you're overseas, it's not 9% of anything over £15,000. It's 9% of your earnings over the repayment threshold of the country you were living in.

Details here:...

Thanks. Understand. I earn 3,000 over the threshold. So am I wrong with my monthly calculation or is it iZool. If izool is right, i can afford to pay that amount per month.

I understand interest will have accrued and that is fine. But if I explain to them honestly my ignorance and failure to inform them on leaving the country and explain to them that i have a family to support, does anybody know if I can just pay the right amount back per month and not the hundreds of pounds default monthly amounts they charge in the link above. I can really get on top of this if iZool's figures are right but I still cannot afford their punishment default amounts. Does anyone know if they are prepared to move on their punishment? Thank you everyone in advance for your help...

izools

You pay 9% of the amount that you're over.

So if, e.g. the threshold is £15,000 per year and you earn £20,000 per year then you repay 9% of £5,000 (the difference) per year.

OP you confused per year with per month.

Simples

Little concerned though, you're a graduate, right? Surely a university educated person like yourself can differentiate between per year and per month??

bkbadboy

If you live abroad any have no plans to return to UK, then what????? Are your parents applicable or does the interest keep rising and eventually be wiped when your 65??

dtsazza

bkbadboy wrote: »

If you live abroad any have no plans to return to UK, then what????? Are your parents applicable or does the interest keep rising and eventually be wiped when your 65??

Whether you intend to return to the UK doesn't affect the repayments that you're liable for, so legally you need to notify HMRC of your situation and repay the loan (if it's not automatically done via your payroll).

Your parents shouldn't have anything to do with a modern-style student loan, unless for some reason they were a guarantor on the original loan agreement. And to my knowledge that's not even possible; guarantors are needed when the primary borrower has an insufficient credit rating, but SLC give you the money with zero credit history. So I can't see why parents would be involved at all.

IDunno

dtsazza wrote: »

Whether you intend to return to the UK doesn't affect the repayments that you're liable for, so legally you need to notify HMRC of your situation and repay the loan (if it's not automatically done via your payroll)....

Thank you so much for your comments, dtsassa. There is only one thing I need to know now and I wonder if you, or anybody else has any knowledge/experience. If I call the SLC and explain honestly my ignorance and failure to inform them on leaving the country and explain to them that i have a family to support, do you know if I can just pay the right amount back per month (which for me are manageable) and not the hundreds of pounds default monthly amounts they charge in the link above (See Taiko). I can get on top of this if iZool's figures are right but I simply cannot afford their punishment default amounts. Do you/anyone know if they are prepared to forgive on their punishment? Thank you everyone in advance for your help...

somethingcorporate

That is a really specific question that I doubt many on MSE would be able to advise on. Call SLC and sound them out over it.

What if the answer is you have to pay the penalty amounts, will you keep your head buried?

Fiddlestick

IDunno wrote: »

If I call the SLC and explain honestly my ignorance and failure to inform them on leaving the country and explain to them that i have a family to support, do you know if I can just pay the right amount back per month (which for me are manageable) and not the hundreds of pounds default monthly amounts they charge in the link above (See Taiko).

You can surely ask them and appeal to the goodness of their hearts, but bear in mind they are based in Glasgow so I wouldn't get your hopes up

I can get on top of this if iZool's figures are right but I simply cannot afford their punishment default amounts.

Being serious for a minute, all you can really do is ask them.

IDunno

somethingcorporate wrote: »

That is a really specific question that I doubt many on MSE would be able to advise on. Call SLC and sound them out over it.

What if the answer is you have to pay the penalty amounts, will you keep your head buried?

You're right. I will call the SLC. I'm just so scared if they say that I must pay the default amounts because I just cannot afford it.