student loan default

Bad_website

Can anyone answer a question for me please.
I defaulted my student loan, it is on my credit file as a default and i pay back £150 a month, but what i want to know is, can interest be added onto a default, as they add interest every month to my outstanding debt on the loan.

Thankyou

Tixy

Yes - a creditor is allowed to continue to add interest after a default has been added.
Some creditors will agree to freeze interest & charges in certain circumstances, but they are under no obligtion to do so. And I would doubt that they would on a student loan.

F_Bear

how did u default on the student loan when they take it straight from your wages at 9% over 15k?

Tixy

F_Bear wrote: »

how did u default on the student loan when they take it straight from your wages at 9% over 15k?

I think it would need to be an old style loan for it to appear on their credit file. Old style loans you were responsible for you own repayments.

New style loans you could still default if you were self-employed or worked abroad - but it wouldn't appear on your credit file.

miketaff1408

I thought the same, but what about being self employed and not paying the tax bill which includes student loan part?

(in which case though, the default on the student loan wold be the least of his/worries!!!)

Paully232000

Tixy wrote: »

I think it would need to be an old style loan for it to appear on their credit file. Old style loans you were responsible for you own repayments.

New style loans you could still default if you were self-employed or worked abroad - but it wouldn't appear on your credit file.

I am not sure old style loans appear on a credit file, well mine taken out from 1996-1999, and paid off a few years ago never did

fermi

Paully232000 wrote: »

I am not sure old style loans appear on a credit file, well mine taken out from 1996-1999, and paid off a few years ago never did

If you default on them, then as of a few years ago, they do.

See: http://www.moneysavingexpert.com/news/loans/2009/04/late-student-loan-payers-to-be-repo

Bad_website

Yes it was the old style student loans from 1998, i have two student loans and didn't realise i had to send a deferrement request for each of them, i thought the deferrement i sent back would cover both. So when they kept sending letters i just ignored it as i thought, "well i already have sent the defferment request back", but obviously i hadn't for that one in question