Is this legal? Overseas Student Loans Repayments

Chambers116

Hi All

I have searched the forums but can't find an answer to my question regarding overseas student loan repayments.

I received a letter from SLC (Student Loans Company) today (05/04/16) advising me that my loan repayments will be increasing from £58 per month to £110 per month. Because I pay by direct debit the money will be taken out automatically on 10/04/16. This means I have been given 5 days notice to pay an extra £52. Is this legal? Can I legally stop my direct debit as I'm not sure I can afford this increase?

I have spoken to SLC and they have told me that the threshold over which I must pay 9% of my earnings has been reduced from £17355 to £10500 and this figure is calculated yearly by the DBIS (Department for Business, Innovation and Skills) and that it is based on the cost of living in each country. However the cost of living hasn't dramatically decreased (if anything it has increased dramatically due to much higher rental costs recently). Does anyone know how these thresholds are calculated? Can they legally reduce these thresholds by such a large amount with no detailed explanation?

Any help would be greatly appreciated. Thanks.
Andy

CLAPTON

Chambers116 wrote: »

Hi All

I have searched the forums but can't find an answer to my question regarding overseas student loan repayments.

I received a letter from SLC (Student Loans Company) today (05/04/16) advising me that my loan repayments will be increasing from £58 per month to £110 per month. Because I pay by direct debit the money will be taken out automatically on 10/04/16. This means I have been given 5 days notice to pay an extra £52. Is this legal? Can I legally stop my direct debit as I'm not sure I can afford this increase?

I have spoken to SLC and they have told me that the threshold over which I must pay 9% of my earnings has been reduced from £17355 to £10500 and this figure is calculated yearly by the DBIS (Department for Business, Innovation and Skills) and that it is based on the cost of living in each country. However the cost of living hasn't dramatically decreased (if anything it has increased dramatically due to much higher rental costs recently). Does anyone know how these thresholds are calculated? Can they legally reduce these thresholds by such a large amount with no detailed explanation?

Any help would be greatly appreciated. Thanks.
Andy

you are entitled to 10 days notice for changes in DD deductions

have you checked the threshold is correct for the country you live in?

how long have you lived there?

Chambers116

I have spoken to SLC and they have advised me that the new figure is correct for Kuwait. I have emailed the DBIS to ask how the new figure has been calculated. The exchange rate has increased by about 10% in the last 12 months so if anything the threshold should have been increased. Yet it has been decreased by over 39%. I am awaiting a response from the DBIS.

I have only lived in Kuwait for 8 months. However I have friends who have lived in Kuwait for many years and they have told me that the cost of living has increased dramatically in recent years due to a huge jump in rental costs. I am struggling to see how they can justify a 39% reduction especially considering the increase in the exchange rate.

antrobus

Repayment plan 1?

The overseas thresholds are shown here;
http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678668&_dad=portal&_schema=PORTAL

Kuwait is listed as £17,335 for 2015/16. Is it being changed for 2016/17?

Chambers116

antrobus wrote: »

Repayment plan 1?

Kuwait is listed as £17,335 for 2015/16. Is it being changed for 2016/17?

Yes I'm on plan 1 and yes it's being changed to £10500 for 2016/17.

Chambers116

Yes I'm on plan 1 and yes it's being changed to £10500 for 2016/17.