Student Loan debt

[Deleted User]

My son has gone into work today deeply depressed having received a statement from Student Loan company, this includes a Tuition Fee Loan payment of £1312.50 for 08.07.15 (he actually withdraw from Uni in February 2015)




In addition he has been charged 2024.43 in interest:
2012 6.60%
2013 6.30%
2014 6.30%
dropping to 5.50% 09.2014
dropping to 2.50% 04.2015


Do the above interest rates look correct ?


My son is in employment now but not reaching threshold to make repayments yet.
.

National_Debtline

Hi Treetops,


It sounds as though your son was overpaid his tuition loan because he withdrew in February but still received a payment in July. When there is an overpayment the money falls due immediately and is not subject to the same threshold rules as the student loan.


I cannot comment as to the interest, he would need to check the terms and conditions of the loan. Effectively his is now a non priority debt that he will need to make an offer to repay what he can afford monthly. If an agreement can't be met then they can use debt collectors or county court. It is no different to a credit debt that has fallen unmanageable. Good luck,


Laura
@natdebtline

[Deleted User]

Laura,


I thought Tuition Fee Loan payments are paid directly to the University , it is maintenance loan payments that are paid directly to the student.

nofixedabode

Tuition fee loans do go directly to the university yes. Maintenance loans and grants go directly to the student.

Ed-1

treetops wrote: »

My son has gone into work today deeply depressed having received a statement from Student Loan company, this includes a Tuition Fee Loan payment of £1312.50 for 08.07.15 (he actually withdraw from Uni in February 2015)




In addition he has been charged 2024.43 in interest:
2012 6.60%
2013 6.30%
2014 6.30%
dropping to 5.50% 09.2014
dropping to 2.50% 04.2015


Do the above interest rates look correct ?


My son is in employment now but not reaching threshold to make repayments yet.
.

Yes those interest rates are correct (see link below).

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678755&_dad=portal&_schema=PORTAL

His current interest rate is 0.9% and will change to 1.6% from 1st September unless he is earning over £21,000 when it will be up to 4.6%.

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3866911&_dad=portal&_schema=PORTAL

He has a plan 2 loan (post-2012) so as I'm sure you're aware he will repay 9% of his income earned over £21,000 for up to 30 years from when the loan became liable to be repaid. In your son's case this is April 2016 as no plan 2 loans were liable to be repaid before then. On 6th April 2046 anything left unpaid will be written off by government.

How much tuition fee loan did he get in 2014/15 in total?

[Deleted User]

thanks Ed for checking interest rates.


In


05.02.14 2250
07.05.14 4500
24.12.14 1312


was paid in tuition fee loan payments


A payment on 04.02.15 1312 which was reversed as my son was withdrawn from university.


However a subsequent payment was made


08.07.15 1312.50


My understanding is that Tuition fee loan payments are paid directly to the university.


Maintenance loan payments are paid directly to the student.

[Deleted User]

so what I am basically saying is that my son was withdrawn from university in February 2015, however, in July 2015 the student loans company made a further tuition fee loan payment to the University in the sum of £1312.


so the university have received an overpayment in tuition fees.

System

We may need a bit more information from your son.

What it could possibly be is that he 'left' university and did not tell them, so basically stopped turning up. This will mean that SLC (Student Loans Company) will continue funding due to not officially suspending or terminating studies. The payment will be due to the fact that he h as been overpaid, as he stopped turning up.

If he did officially withdraw AFTER the Sem 2 cut off, the uni will want paying and the SLC won't want to...then he will owe the money to the uni as SLC won't pay and provision for learning has been set (tutors booked, rooms allocated...it all adds up). It's right, it won't get spread over years like the rest, it'll be demanded repo style by the uni immediately.

What happens is that the SLC pay the university concerned if all is well. If a learner fails to show or leaves early AND the uni has been paid, SLC will demand money back from the Uni. The uni will then (usually) pursue you for the money they lost from SLC. Basically, the tuition was made available, SLC identify he's not going and take the money back...uni then go to the person in a private action.

There are specific times of year that if you breach, you owe.

System

nofixedabode wrote: »

Tuition fee loans do go directly to the university yes. Maintenance loans and grants go directly to the student.

Yes Tuition fee loans go direct, however if the SLC pulls funding from the Uni (due to quitting early or poor attendance) and/or the student hasn't told the uni that they've left, the uni go direct to the student for the money back.

It's to prevent students from effectively taking the money and not doing anything AND from quitting mid-point. It's also linked to attendance.

System

treetops wrote: »

so what I am basically saying is that my son was withdrawn from university in February 2015, however, in July 2015 the student loans company made a further tuition fee loan payment to the University in the sum of £1312.


so the university have received an overpayment in tuition fees.

All depends on when he was officially withdrawn (if at all - many students just stop attending). If it attended any of the Sem 2 sessions (which starts in Feb), the SLC will probably think he's pulled a fast one and want the money back. It's always best to try and finish the year if the loan has been paid to the uni...you've paid for it after all !

[Deleted User]

As andy says it would all be down to when your Son officially withdrew from the course.

This is completely different to when he stopped attending the course.

Also depending on how far into a term he is he may still owe fees for that term, it is down to the discretion of the Uni as to how much they are going to charge him for that.

Have you contacted the Uni?

Dxxx