Very old unpaid Student Loan query

tamlem

In 1992 I took out a student loan whilst at uni(it was only around £1000 and I only took one). Several years later in the late 90s I went bankrupt, the student loan was not a problem because I wasn't earning anywhere near the threshold but I included it in the bankruptcy but subsequently received a letter from them saying it could not be included.

That was fine and I continued deferring because my income was low. Since then I have moved several times, always having long redirection periods but haven't heard anything more from student loans. I know I should have contacted them at some point to change address etc but always thought i'd do it when they sent me my yearly letter but never received anything and heard no more. The irony is, I am still under the threshold for paying back, and always have been but I know that the lack of contact and upkeep means the loan may have defaulted and they may have taken action without me being aware.

My issue is that I now wish to apply for a tuition fee loan for a pgce at a uni in the south of england. Whilst I theoretically qualify I am worried that they will come up with my previous loan and won't lend to me and also chase me for the previous loan. I wouldn't be unhappy paying back the previous loan amount but am concerned that it may have accrued huge charges during this time that I won't be able to afford. My surname has changed but I'm fairly certain they took my NI number back when I applied so may well find the old loan? I have also heard that because of the amount of time passed and the type of loan I had it could be "statute barred" meaning that I could refuse to acknowledge it and not be forced to pay it back. But obviously they wouldn't want to lend me anymore money. Does anyone know if this statute barred status is true and what it really means?

I know this seems so silly over something that I could legitimately have deferred and not paid. I'm wishing now I had chased it more and not relied on them. I am a bit worried about how much I might now owe on the original £1000 and don't know if it is worth risking applying for the tuition fee loan, that said, I really need it to do the pgce.

Any advice would be welcome. I have credit expert and there is no record of anything on my file and my credit rating is and has been excellent for the last few years.

Thanks for your help

Clive_Woody

I am pretty sure that student loans are exempt from being statute barred (not 100% sure on that).

Best advice would be to contact them and start sorting this out now so this is not hanging over you any longer.

tamlem

Clive_Woody wrote: »

I am pretty sure that student loans are exempt from being statute barred (not 100% sure on that).

Best advice would be to contact them and start sorting this out now so this is not hanging over you any longer.

Yes they are now but I believe those are the more recent ones, I have been told that the earlier ones were different types of credit agreements and can be statute barred? Quite unsure though, hence checking on here.

Thanks for your advice. I will need to sort it out one way or another, I just want to get a clear idea of what I'm dealing with before I jump! Thanks

Pixie5740

I think the older style of loans can become statute barred.

I'm not sure the SLC will stop you getting another loan, you'll just need to apply and see what happens.

Tixy

Old style student loans can become statute barred - the relevant date would likely be 6years from when you last completed a deferral.

If a debt is statute barred then it only means the creditor cannot take you to court to enforce the debt, you do still owe it and potentially they may be able to recover the funds from you in another way (e.g. if you were awarded another student loan I don't if they may be able deduct the old loan from the new loan before it is paid to you).

As to whether it would prevent you being accepted for a new student loan, I don't know, you could ring the student loan helpline and ask anonymously or could apply and see what they say.

drunk1

Definitely won't stop you getting further student loans.

The only thing they can stop you getting is any grants you haven't paid back that you weren't entitled to.

Basic way of how it works is SE (Standard entitlement - Length of course) + 1 (Gift year - re-takes/false start) - PS (Previous Study). No matter what your situation everyone is entitled to this under any circumstances except fraud. This is for both TF & ML.

Although this is slightly different in Scotland due to no tuition fees but if you're England, Wales or NI.

Edit : Just noticed it's for a PCGE, you are only entitled to TF if it's for study the country needs jobs for, teachers, doctors, vets etc. If it's NHS based you might need to try them.

tamlem

Thanks for this. I have done previous study- degree and masters degree but I self funded and didn't receive any loans or grants from anyone for those degrees. Is this likely to have an impact on my loan application?

I only want/need the tuition fee loan for my pgce so hoping I will be able to get it.