Am I liable for my Wife's Student Loan arrears?

MrBowman

OK, so my Wife has a student loan that she has to apply for deferment every year for. I am the sole earner and pay for everything, she has zero income and this can be proved and is accepted by Erudio.

Her loan has arrears on it from previous years that she accrued by being a bit slack on applying for the deferment, but Erudio up and until now have never chased for them to be paid. However, that is now starting to change, and they are putting pressure on her to pay them off (not the remaining loan amount), and "threatening" to default the loan.

She had a phone conversation with them today, and the long and short of it is that whilst they are saying I am not liable for the loan, they said they could chase me for the outstanding arrears (is about £500 odd quid).

They have even suggested she looks to claim benefits so she can pay it off. She does not work due to medical conditions but we have never claimed a penny off the state and have not intentions of doing so, especially to hand money over to them.

Now to me that is all BS. I have not entered any agreement with Erudio, I am not a guarantor and the debt is hers, so why do they think that the total loan amount is separate from the arrears? Is this right or is it just scare mongering? She has no way to pay off the arrears unless I choose to pay it for her, and at the moment I have no intention of doing so because I think they are just employing scare tactics.

Now in 5 years time she will be eligible for the loan to be wiped away, and to do that, the arrears will have to be paid. That is fine, and I would stump up the cash to get that done, but this is a point of principle and I need to know where we stand legally with these claims from Erudio.

Thanks in advance.

Terry_Towelling

If you need to know where you stand 'legally' then you really need to seek legal advice - but it would be hard to imagine a situation where you would be liable for your wife's student debt when you were never party to the loan agreements in the first place.

MrBowman

Terry_Towelling wrote: »

If you need to know where you stand 'legally' then you really need to seek legal advice - but it would be hard to imagine a situation where you would be liable for your wife's student debt when you were never party to the loan agreements in the first place.

We have contacted the CAB to make an appointment try and get some initial advice, but I am with you. I have nothing to do with the agreement or the loan, so quite why they can effectively threaten me via my Wife with sending round debt collectors to recover the arrears amount I don't know. But am I missing something here?

By the way, I am not trying subvert the law here, I am trying to understand the law and my rights. If this is a real risk then I will pay it and get rid of the problem.

Ben8282

Have they really sent round debt collectors to your house to recover the arrears amount or just threatened to do this?
You are in no way liable for this debt. I don't really understand how you have been brought into this in the first place.
You say the arrears is only about £500. You could perhaps consider giving this money to your wife to pay the arrears, not because you are in any way obliged to but simply to put an end to the problem. After all, if your wife is unwell you really don't need all this hassle.

MrBowman

Ben8282 wrote: »

Have they really sent round debt collectors to your house to recover the arrears amount or just threatened to do this?
You are in no way liable for this debt. I don't really understand how you have been brought into this in the first place.
You say the arrears is only about £500. You could perhaps consider giving this money to your wife to pay the arrears, not because you are in any way obliged to but simply to put an end to the problem. After all, if your wife is unwell you really don't need all this hassle.

No they haven't sent anyone around, it was an implied threat made on the phone today and was the first time they have ever tried anything like this. I suspect they are told to say it to frighten people into just paying. Yes you are right, I could just pay it off, but that is not the point. I will get some advice and see where I stand and go from there.

sourcrates

Unfortunately you have experienced how a debt collection company does its daily business, they will say or imply anything in order to get paid, it’s just typical debt collectors spiel that you can safely ignore.

So for the avoidance of doubt, only the named debtor on the agreement is liable for a particular debt, debt does not transfer between people, ever, even in death, the debt dies with you if your estate cannot cover it.

The long and the short of it is never speak to these people on the phone, do everything in writing only, they are a lot more careful what they put in a letter, than what they say on the phone.

Ben8282

For what it's worth I am 100% sure that YOU have no liability in this matter. In the absence of any legal agreement to the contrary, an individual CANNOT be held responsible for another persons debt, even if they are married to the individual concerned.

MrBowman

Thanks for the responses. When we get our appointment with the CAB I will post up the advice given on this thread, which I suspect is the same as what you guys have said already.

Bermonia

I agree with the other posters you do not appear to have any liability in this matter.

The only scenario where this could possibly impact you is if this progresses to appointing bailiffs in which case could lead to goods being taken which could in essence be yours... but I’d say even that is very unlikely at this stage.

MallyGirl

Do you have any financial associations with your wife - joint loans or mortgages? If so then this might have a detrimental effect on your future borrowing if they try for a CCJ or whatever against her

MrBowman

MallyGirl wrote: »

Do you have any financial associations with your wife - joint loans or mortgages? If so then this might have a detrimental effect on your future borrowing if they try for a CCJ or whatever against her

We have a mortgage together but that is it. But I take your point and had thought of that. So far I don't think we are anywhere near close to that point, it is just the thinly veiled threats on the phone when she rings up about the deferment. I am hoping today with the latest evidence we can get the loan deferred for another year. Then that leave the arrears, which I will pay off if I have to. At the moment it is just a point of principle I am fighting. Stupid maybe but I won't just roll over unless I really have to.