SLC repayment confusion

lalala20

Hi! So basically I have a question regarding SLC loans, as while I do understand the broad mechanism of it, I feel like it's actually very confusing to get contextual help from them because some staff is underprepared and probably don't understand the 'fine print' part of it either. Some of it is just ambiguous altogether.

So basically I went to uni in the UK and have a Loan 2 and Postgrad loan that I am now repaying, but repaying as an overseas resident as I have left the UK after finishing my studies (Eu national). I have religiously updated the employment status ever since I moved because I have no intention of getting in trouble. So naturally, I also informed them at the beginning of the month that I have resigned from my job with nothing else lined up and will be unemployed as of the end of this month.

They requested more evidence of my unemployment (which I get, probably some people try to avoid repaying) but there is some ambiguity regarding this for me. 

They either request that I declare if Third parties (i.e. parents) are helping me with declarations from them, or to explain if I will be self employed, of surviving off of savings.

My parents have the intention of supporting me by giving me a larger lump sum of money, but I don't know how this will affect my 'unemployment status', or if they'll require me to still pay from that larger lump sum -- in my view that classifies as savings, it's not income if my parents are giving me it, and I don't derive income from it. But then again, I have also incorporated an LLC (equivalent of in my country), but I currently make no money on it, and only have put money in it, and I'm not employed by it, which means I will have to withdraw dividends quarterly (none so far, as no income) -- I intend to make this my full time thing, but I do not need to be legally employed by the company because I am the founder of it; this also doesn't grant me the self-employed status in my view, as there is no legal; need for an employment contract to withdraw dividends. I don't know how to explain this to them, so that I can maybe declare the quarterly dividends and they tell me what I owe from that -- I can provide a letter from my accountant to that effect.

My parents also suggested I inquire what I would have to pay if I were to consider paying the loan in full (what remains), as my understanding is a full payment would mean a recalculation of the interest they have added? I'm not sure about this either. 

How do I explain all of this? I have 0 understanding of what they have claim over, if larger sums from my family would be considered repayments still even if that's not an income, or if in my situation I would still have to make the repayments even if I am actually about to be unemployed.

MSE_ForumTeam5

We've moved this to our Student MoneySaving board where student finance questions belong

lalala20

Thank you. It's still a loan, so wasn't sure where it best belongs.

silvercar

Easy answers first.

if you want to pay the loan off in full then that is the current outstanding balance. This already incorporates the interest already charged and doesn’t include future interest. So would be a straight forward repayment of the outstanding balance. Make sure they have record of recent monthly loan repayments as there is sometimes a lag. Obviously you are going to want to investigate whether this makes sense to do, in terms of future likely income and whether the money could be better used elsewhere.

Any money from your parents should be considered a gift and not subject to loan repayments. I would consider that to be your income until such a time as you start earning money from your own LLC.