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Repaying Student Loans
I work overseas, have a Type 2 loan, from 2009/10 that I am paying off.
Currently, I am just paying off the default country rate as it is lower than what I would be required to pay if I submitted my actual details.
From my understanding, this is acceptable by the terms of the SLC and my loan will be cleared in 2 years time. If I was paying at the correct rate it would clear in about 1 year's time.
SLC have been sending letters again demanding that I update my details and if I don't they will potentially penalise me.
My question is are they able to do this? If I am paying the correct country rate, actually 2GBP higher just to round it off and make it easy, then as I read it I am complying with the terms of the repayment.
What sort of penalty are they allowed to charge? I am not behind on any payments. All are on time and paid from a local bank card.
Currently, I am just paying off the default country rate as it is lower than what I would be required to pay if I submitted my actual details.
From my understanding, this is acceptable by the terms of the SLC and my loan will be cleared in 2 years time. If I was paying at the correct rate it would clear in about 1 year's time.
SLC have been sending letters again demanding that I update my details and if I don't they will potentially penalise me.
My question is are they able to do this? If I am paying the correct country rate, actually 2GBP higher just to round it off and make it easy, then as I read it I am complying with the terms of the repayment.
What sort of penalty are they allowed to charge? I am not behind on any payments. All are on time and paid from a local bank card.
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Comments
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You say "Currently, I am just paying off the default country rate as it is lower than what I would be required to pay if I submitted my actual details."
It's obvious that the loans company is aware that you have not sumitted your actual details. Just do as they ask and update your details.
They will then tell you (a) what you should pay, (b) how long it will take to pay off (c) what you need to do next. You're not really allowed to make up your own Ts and Cs.
Sadly you can't buck the system. But if you weren't earning enough to repay then you'd have to complete an annual defer payment form and wouldn't be expected to pay anything.
Nobody knows what sort of penalty they will charge - they are allowed to do that. But why risk it? Just comply with their request, they'll work it all out and tell you what you have to pay. If it's only for another twelve months, what's wrong with that?
Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.0
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