...but it pours. I can't afford student loan repayments!

planimals

I have three old style (pre 1998) loans -- one from Thesis, two from the Student Loans company.

In the past, I have managed to successfully defer the repayments. This year, my situation is different.

I've been working as freelancer since September. I've had some good work since then and I've had a good income.. As such, I was unable to defer repayment of the loans this year.

However, I expect my income to fall significantly in months to come.

Added to this, we are a single salary family. After bills, food and rent there is rarely little left in the pot. We can afford little, let alone an extra £150 each month.

I'm going to contact them on Monday and explain that I can't pay. However, I've come here to ask if there's a better approach. On paper, my income for this financial year just gone looks okay -- above average -- but my income is irregular, we have no savings, and I know we'll struggle to make plenty of payments these next few months to come.

Has anyone else been faced with a similar situation?

(And to rub salt in the wound, my degree isn't worth the paper it's printed on!)

Dunroamin

planimals wrote: »

I have three old style (pre 1998) loans -- one from Thesis, two from the Student Loans company.

In the past, I have managed to successfully defer the repayments. This year, my situation is different.

I've been working as freelancer since September. I've had some good work since then and I've had a good income.. As such, I was unable to defer repayment of the loans this year.

However, I expect my income to fall significantly in months to come.

Added to this, we are a single salary family. After bills, food and rent there is rarely little left in the pot. We can afford little, let alone an extra £150 each month.

I'm going to contact them on Monday and explain that I can't pay. However, I've come here to ask if there's a better approach. On paper, my income for this financial year just gone looks okay -- above average -- but my income is irregular, we have no savings, and I know we'll struggle to make plenty of payments these next few months to come.

Has anyone else been faced with a similar situation?

(And to rub salt in the wound, my degree isn't worth the paper it's printed on!)

Do you claim child and working tax credits?

lippy1923

Why can't you afford it? What bills are getting in the way? Perhaps it's worth re-evaluating your life style as you appear to be living on the edge and struggling. It would be worth posting an SOA on the debt free board to see where you can cut down on your outgoings and increase your income. Are you getting any benefits you are entitled to?

Can you look to change your single salary family into a multi salary family? Or possibly move if the rent is too high?

chalkie99

lippy1923 wrote: »

Why can't you afford it? What bills are getting in the way? Perhaps it's worth re-evaluating your life style as you appear to be living on the edge and struggling. It would be worth posting an SOA on the debt free board to see where you can cut down on your outgoings and increase your income. Are you getting any benefits you are entitled to?

Can you look to change your single salary family into a multi salary family? Or possibly move if the rent is too high?

It might surprise you to know that many people cannot afford any sort of lifestyle after paying their bills, food and rent.

I find those comments quite odd when the OP has given no indication of extravagance.

planimals

There is no extravagance.

We do receive working tax credits and child benefit.

Dunroamin

chalkie99 wrote: »

It might surprise you to know that many people cannot afford any sort of lifestyle after paying their bills, food and rent.

I find those comments quite odd when the OP has given no indication of extravagance.

To be fair, you do need to be on quite a decent income not to be able to defer pre 1998 loans, unlike the more recent ones.

OP, you need to contact the SLC, explain your finacial difficulties and see whether they will accept lower repayments.

lippy1923

chalkie99 wrote: »

It might surprise you to know that many people cannot afford any sort of lifestyle after paying their bills, food and rent.

I find those comments quite odd when the OP has given no indication of extravagance.

I don't think there was anything wrong or odd with what I suggested. It would benefit the OP to have a financial health check every now and then. This could help them cut down on things to help them pay their loan (which they say they cannot afford)

Many people may not have anything left after the bills because they pay too much in the first place. It was just a suggestion. The OP doesn't have to like it or do it.

mysk_girl

Pre 1998 loan repayments are massive compared to the new style loans. I had 4 pre 1998 loans when I graduated in 2001, and I got a job earning £20800. This was very close to the threshold for deferment at the time (over it, just) so I had to start making full repayments in the April. My repayments were £126/month, which was about 11% of my entire take home pay. None of this 9% of everything over £15k... It was my largest outgoing each month bar rent for the whole 5 years it took to pay it off.

I understand that you need to live within your limits, but if the payments are of the same magnitude, that's a LOT of extra income to find or save...

cos_2

planimals wrote: »

(And to rub salt in the wound, my degree isn't worth the paper it's printed on!)

Sorry I can't address your real question but I just had to come back on this.

I set off on my university life reading music, expecting to have some sort of future in it. It didn't work out and I ended up with a business degree.

I got a job quite quickly because of that degree. I then spent 26 years wondering when I'd get the job a wanted . . .

My degree probably IS worth the paper, but I regret it.

Sorry to go off course, and good luck with good advice from other MSE'ers.

bigadaj

cos wrote: »

Sorry I can't address your real question but I just had to come back on this.

I set off on my university life reading music, expecting to have some sort of future in it. It didn't work out and I ended up with a business degree.

I got a job quite quickly because of that degree. I then spent 26 years wondering when I'd get the job a wanted . . .

My degree probably IS worth the paper, but I regret it.

Sorry to go off course, and good luck with good advice from other MSE'ers.

The key is to strike a balance, determine what you are interested in, then how that can apply in the real world to provide a career.

To go further off topic, it amuses me slightly to see everyone's desperation to retire early, whilst financial security is important, doesn't te desperation to retire early, particularly when virtually no one in the UK does a hard, horrible or physical job anymore, indicate that people just make th wrong career choices?

K_S_P

I have reached a similar situation. I have 4 loans - 2 from 96/97 with SLC and 2 from 98/99 with Thesis. I have deferred them for 13 years because a)I never met the salary limit and b)I just couldn't afford to pay them back.
I have now (April) had a £20 pay rise (don't even go there) which takes me just over the limit and I cannot defer. I cannot afford £200 a month - there was a reason I deferred, it wasn't just for the fun of it. So I've now gone from an acceptance that I couldn't afford it one month to suddenly apparently having an extra £200 to spare. It doesn't make sense.
I phoned Thesis yesterday (in tears I might add) - possibly the most unhelpful and unsupportive person I have ever spoken to. The payments are as they are - tough.
Whilst my monthly salary may look healthy on paper, I have various other loans, and repayments and I simply cannot pay this. I live on the breadline as it is and worry about money every waking moment. This has sent me over the edge. I am looking at selling my house. It seems that Thesis have not spoken to SLC to establish each other's repayment amounts and they don't appreciate that there are other factors to take into account, not just what the figure is on my payslip.