Student loans post 1998 (payment plan 1)

thomnewman

Hi,
I have received a letter from the Student Loan Company for an alleged loan from 2004. 

As I have never made any payments or acknowledged the loan, would this be classed as statute barred? 

They are claiming section 6 of the limitations act 1980 provides that section 5 does not apply and the loan can never be statute barred. 

This to me doesn’t seem right, especially as the Student loans company is a private organisation who act on behalf of the government, not the government itself. 

As I also no longer live in the UK, I don’t know if they can actually deduct anything from the little wages I get anyway?

Thanks in advance. 

[Deleted User]

Government debt doesn't disappear, 6 years or not

sourcrates

New style student loans are subject to the limitation act, however, the cause of action date is more difficult to determine because the loan is not due for repayment until your income reaches the applicable threshold.
If your no longer in the UK then there’s not much they can do about it, I suggest if you want to put this to bed contact National Debtline and ask their advice.

[Deleted User]

Let's be honest, you say it's an "alleged" debt - you either went to uni and had a loan, or you didn't. If you did, there is nothing alleged about it, you took the money and you owe it back. Going abroad, being under the threshold for repayment, unlikely you would ever have to pay it back but at the same time, don't come back to the UK and expect anything like a pension or benefits as it's a two way street.

epm-84

If you are abroad for over 3 months you are supposed to complete an Overseas Income Assessment Form.  Failure to do that (regardless of whether or not you're earning over the threshold) can result in SLC imposing penalties.

epm-84

Deleted_User said:

don't come back to the UK and expect anything like a pension or benefits as it's a two way street.

He/she may get a basic state pension if they have spent some years paying NI or getting NI credits in the UK prior to moving abroad.

wanabeFTB

Depending on your age it may be written off soon. Pay what you can in the meantime  https://www.gov.uk/repaying-your-student-loan/when-your-student-loan-gets-written-off-or-cancelled

epm-84

wanabeFTB said:

Depending on your age it may be written off soon. Pay what you can in the meantime  https://www.gov.uk/repaying-your-student-loan/when-your-student-loan-gets-written-off-or-cancelled

Unless you are confident your loan will be repaid in full before it's written off then the best approach is to only pay what you are required to pay and to claim back any overpayments e.g. if you earn £6000 in the first 3 months of a tax year and then are unemployed for a number of months, meaning your total income for the year is below the annual threshold.