Student debt avoidance and facing the music

Travellingclown

Hello, any advice on my issue would be welcome. So ten years ago I got the oppourtunity to travel Australia for 2 years after graduating, I told the student loan company my plans and filled out the forms with a contact address in Australia. After two years of nothing more than a bit of bar work here and there I finally secured full time job in Australia. Basically a one year position turned into 8 years and before I know it I'm 10 years behind in my student Loans payment. Never once have they contacted me. I know I should of contacted them, I was very irresponsible. And little did I know that I would have to move back to the U.K. One day, and that day is now!!! I posted on another forum and I was basically told that when I arrive back and start working, they will take a obscene percentage of my wage and probably take me to court for fraud! Has anyone had any experience of this as obviously I am extremely worried.

National_Debtline

Hi and welcome to MSE,


This is a very complicated topic and unfortunately, it is also a unclear what action the student loan company will take. Firstly, assuming this was a student loan taken out after Sept 1998 (considered to be a new style student loan) then you would have been required to inform the student loan company when your earnings exceeded the threshold. According to the student loan repayment website the threshold for earning, in Australia, for April 16 - 17 is £20,990.


If the SLC believe you have earned over this threshold but have not told them the money may be able to be chased through the county court. This may have begun in your absence. You can check if a CCJ has been put against you in the last 6 years by checking online at www.trustonline.org.uk (this will cost a few pounds to do).


If there is no CCJ I am afraid there is no clear guidance about future deductions from salary and back payments for the arrears. Unfortunately, it is possible that the debt may have increased through interest and charges. I would suggest you check if there is a CCJ and then go from there.


Laura
@natdebtline

Travellingclown

Thanks for the reply. I checked my Ccjs and there aren't any listed. And yes the Loan was post 1998 so the new style loan. I know they can take out when I start earning, and rightly so. I just want make sure they can't take 70% of my wage, or worse....jail me.

sourcrates

Travellingclown wrote: »

I just want make sure they can't take 70% of my wage, or worse....jail me.

You can't go to jail for debt.

It ceased to be a criminal offence in the 1900's, so I think you'll be ok.

National_Debtline

The issue with fraud can be proving intent, which is very difficult to establish in a situation like this. I don't think that is something to worry about unless they have specifically said this is an issue in correspondence to you.


With regard to the repayments you will need to check the terms and conditions of the loan. It is possible (according to the SLC website on repayments) you may be charged a higher rate of interest and charge penalties. It also states that you may be asked to repay at a 'fixed repayment rate' which may be higher than the repayment rate due - unfortunately, the rate is not specified.


I would suggest contacting one of the free debt advice charities for more advice.


Laura
@natdebtline