Mum is 52,DLA and is being harassed!

shelley24

Hi,

My mum went to uni as a mature student when she was 35..i think! She did a two year degree and graduated about 13 years ago. She found a job locally as a support worker but was then diagnosed with MS. She was not allowed to work anymore and was given DLA. Anyway she had a student loan which she was paying but was then told she would not have to pay this as her income didnt allow enough and she was recieving DLA.

Anyway moving on 10 years down the line she is still continually getting letters from a debt recovery agency and the students loan people which of late has become on the verge of harassment. She has sent letters and told them continually she is recieving DLA aswell as sending off a photocopy of her DLA!

My question is does anyone know if the Financial Ombudsman would get involved in this sort of situation, or if not who could help us?

Any help much appreciated?

minimadtrix

Can you clarify who was it that said she didn't have to pay the loan?

shelley24

Having asked my mum she said it was specified in terms and conditions of student loan that you have to earn above a certain amount before you need to contribute, my mum worked for a year in between finishing uni and having to give up work and im thinking they are chasing her for the years worth of working, although she just told me that she sure it was £20,000/annum you had to earn (i think its more likely £10,000/annum)

The MS confuses my mum and she often forgets things so to ask her to think back 10 years isnt going to be accurate. Just wondered if there was anyone she could speak to so as to rectify the situation.

Oldernotwiser

The threshold for pre 1998 loans is well over £20,000 so this can't be the problem. I wonder if she's been sending off her deferment forms every year? If you're on DLA it doesn't count towards your income but you still need to defer each year.
http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/RepayingStudentLoansCoursesStartingBefore1998/DG_10034847

You might find the student loans deferment line helpful but your mother will have to phone them herself.

http://www.direct.gov.uk/en/Dl1/Directories/DG_6000194

shelley24

Thankyou very much, printing as we speak, ill let you know the outcome!

Oldernotwiser

Let us know how you get on. Good luck!

Crispy_Ambulance

If you haven't deferred your loan properly every year, it will usually get passed to a debt collection agency. The student loans company are very unlikely to take the debt back if it has been passed on.

The best bet would be to contact a CAB or equivalent and look to negotiating token payments with the debt collector or asking them to write it off.

[Deleted User]

As Crispy said, you may not earn enough to repay the loan but you still have to defer it every year, and if this hasn't been done, it is passed to a debt collection agency. Normally they will then backdate the deferral, but only for 3 months.

I suggest your mother goes to a debt adviser - see https://www.adviceguide.org.uk for your local CAB. If the Student Loans Co/Debt Collectors are refusing to backdate a deferral, she can submit a financial statement offering to pay £1 a month (depending on income, but I am assuming the income is solely from benefits)

shelley24

Thanks for all comments, we have a local CAB down the road. I'll take my mum to see them and see what they suggest.

I have to say though i am disgusted with the whole procedure, i never having been to uni know very little about student loans. How can they still try and get money from someone who is bedbound due to a lifechanging illness, there is no way she willl ever be able to walk and work again no matter how much she might want to, so why does she have to have the added stress of deferring every year.

I'm hoping that it has gone beyond the Student Loan people and we will be dealing with The Debt Recovery Agency. Anyone know how highly the chances are of this debt being written off. She receives the highest DLA and Incapacity Benefit, she has her own mortgage which she has to pay every month. Overall she brings in about £600/month in benefits and she has to pay out £200 to the mortgage (interest only).

She is also part of the Independent Living Scheme and she has her own PA's which she employs and pays them from a kitty(put in by ILS), however, her SW and ILS person forgot to tell her(for a year!)that she had to be paying Tax bills every 3 months for £2000 each time, she got into arrears with this and they now want £80 A WEEK! to recover the arrears!

Sorry for the rant, many people will read this and say well she shoudlve known that she had to pay tax but my mum is very naive and i think she thought the ILS would sort all that out. I feel really sorry for her as she now has to adjust the hours her PA's work. This in turn means she cannot go out at times when she wants to, her life is just worked around staff rotas

[Deleted User]

Ah, I now see that your Mum is not likely to work again (didn't register the first time I read!). In that case, the following condition should apply.

Student Loans T&Cs

"Special arrangements write-off

All lending is also written off on death (the account holder's estate must provide the death certificate) or permanent disablement or illness (if the account holder is likely to be permanently unfit for work, the account holder or someone acting for him under Power of Attorney must produce a statement to this effect from the relevant medical authority)."

Savvy_Sue

That mention of Power of Attorney makes me wonder if it's worth getting one for you to deal with these things on your mum's behalf. It's a big responsibility to take on, and your mum may not be ready to 'let go', but it's something to think about.