Avoid ever having to pay back your student loan

johncolin78

Here is a question that should be of great interest to the readers of this forum.

I am not sure how many of you are familiar with the reclaiming bank charges situation, although it seems that it is all over the media currently in England (and so it should be). But the rule is that you can claim up to six years worth of charges by law. i.e. You can only chase payments for six years.

Does this mean you can defer your student loan for six years then never pay it back?

Who's with me? Any ideas?

tr3mor

No :rolleyes:

melancholly

johncolin78 wrote:

Here is a question that should be of great interest to the readers of this forum.

I am not sure how many of you are familiar with the reclaiming bank charges situation, although it seems that it is all over the media currently in England (and so it should be). But the rule is that you can claim up to six years worth of charges by law. i.e. You can only chase payments for six years.

Does this mean you can defer your student loan for six years then never pay it back?

Who's with me? Any ideas?

i don't really understand the logic here.... you can claim back charges from *banks* and somehow this means that you don't have to pay back the *student loans company*? The terms of a student loan are pretty specific, you pay back an amount proportional to your wage only when you earn enough..... i think trying to wriggle out it like this is unlikely to be successful, and also a bit low.

martin seems to have been the person shouting loudest about the reclaiming bank charges issue - here's his article on it on the main website, if you haven't read it already, you should!

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632,

johncolin78

A friend of mine, someone who already claimed 2k of charges back and inspired me to do the same, said that the legal limit for chasing payments of any kind is six years.

The logic being that after six years the student loans company cannot chase you for loan payments.

Is this right??? Is the reason why I am asking on here, bound to be someone more knowledgeable than my friend.

doom

The whole point of Money Saving is not letting companies take you for a ride and claiming back money which is rightfully yours.. Not borrowing money in good faith and then trying your hardest to wriggle out of paying it back. It works both ways you know. I do not let companies take advantage of me, but at the same time if you do genuinely owe someone money you should pay it back.

stebiz

Student loans can't be written off until you are 65.....not even through bankrupcy.

http://en.wikipedia.org/wiki/Student_loan#United_Kingdom

Stebiz

tripled

If that were the case, then banks wouldn't offer mortgages as everyone would stop paying them after 6 years.

If you really want to avoid paying it off, move to Brazil or Mexico or some place like that

Crispy_Ambulance

The terms and conditions that you agree to when you take out a student loan explain how the repayments work. You sign a contract which is enforceable through the civil courts.

If you do not make repayments that are due, even if you live overseas, then additional charges will be made and the SLC may accelerate your debt, i.e. get a court order to repay the loan in a single payment.

Other credit debts can be limited by the six year rule but remember, it is 6 years from the last contact, so if a debt collector is contacting you, then your liability continues. just ignoring it does not make it go away.

Crispy_Ambulance

tripled wrote:

If that were the case, then banks wouldn't offer mortgages as everyone would stop paying them after 6 years.

If you really want to avoid paying it off, move to Brazil or Mexico or some place like that

You are still liable to make repayments even if you move overseas.

Ytaya

johncolin78 wrote:

Does this mean you can defer your student loan for six years then never pay it back?

Who's with me? Any ideas?

There's a very easy way to avoid repaying your student loan: earn less than £15,000/year.

Chasing a bank for unreasonably large charges is one thing, but trying to duck your responsibility to a loan you took out with an agreement to repay is quite another. 'Interest at the rate of inflation' is hardly '£50 charge for a £1 overdraft'!

stebiz

Crispy_Ambulance wrote:

Other credit debts can be limited by the six year rule but remember, it is 6 years from the last contact, so if a debt collector is contacting you, then your liability continues. just ignoring it does not make it go away.

Sorry to be pedantic but it is actually the last time the alleged debtor communicates in writing (and admits liability). Not the last time the debt collector contacts you.Stebiz