Student loan arrears, let them take me to court?

JaymeMarie

Last year I was a few months late in deferring my student loans because my mother got very ill and died. It was very traumatic and i was put on ant-depressants. At the time i also wasn't working.

I hoped the Student Loans Company would understand the reasons why i was late in my deferrment.

Instead, they `passed it on' to a company called NCO Europe who are demanding £500 off me.

I am not working again, and think the whole thing absolutely stinks. I am considering letting them take me to court over it because I don't think i should have to pay back the arrears considering my circumstances at the time.

What do people think?

cryptokit

I presume from this you are on one of the "old" systems of student loan repayments, rather than the new PAYE linked system?

You say you were "late with your deferrment", presumably you have previously been paying correctly and then stopped without notifying them at all. This is almost certainly what has triggered off an automatic move to debt collectors.

Whilst waiting for a court appearance is an option, you probably should consider the potential long term impacts of that on your financial history and future ability to get things like mortgages, etc. It might be better to approach student loans in writing, explaining totally the situation, and seeing if they can help by recalling that loan. Having said that I don't know if such a result is possible. If the loan has been sold, you will have to negotiate with the debt collectors, and there is plenty of advice on doing that on the forum here.

JaymeMarie

Thanks for your reply.

Yes, I am a student from the `old' system.

I had never paid anything towards the student loan, due to low income. But we still have to fill out the deferrment form every year and last year I was a few months late doing it because of a traumatic family event (led to me having medication and counselling).

I can't believe it was considered special circumstances by The Student Loans Company. Now I have their debt collectors (NCO Europe) after me for a ton of money. it seems absurd and really unfair.

You can't even phone the Student Loans Company or the Debt Colletors without paying for an `0870' call.

FatJock

JaymeMarie,

I am dealing with the Student Loan Company for my old loans so I can understand your situation. I would suggest that you contact both of them in writing and ask what the £500 is for. It could relate to penalty charges, interest and repayement fees. Try to come to an arrangement with them, at the end of the day they cannot have what you have not got.

Please contact them asap and explain your situation. Do not leave it to long as they might start to add more charges.

Hope this is useful.

Regards,
FatJock

in_over_my_head_2

Hi JaymeMarie,

Have you spoken to anyone from NCO?

I was in a similar situation last year, didn't send off the deferrment form, and about 4 months passed before I woke up and started dealing with things. By that time they had passed the debt on (can't remember the name of the company though...Logic maybe?) and when I rang the SLC they said that someone would be coming to the house. Well I was panic-stricken at that thought, but they assured me that it would be fine and to have copies of my wage slips ready for their man coming - he came, he filled out a deferrment form with me, and told me where to send my payslips to. Was painless...

briona

JaymeMarie wrote:

You can't even phone the Student Loans Company or the Debt Colletors without paying for an `0870' call.

Hi JaymeMarie

No advice re. the situation but you can find cheaper numbers for the SLC (among others) on https://www.saynoto0870.co.uk and then click "search to find an alternative number".

Briona