Incorrect Settlement Figure

vickilew

Hi, I asked the Student Loan Company for a settlement figure and paid up in full. Towards the end of the conversation I specifically said, " So, I don't owe anything else the the Student Loans Company?" I was told that that was it.

Two months later, I was sent a letter by them saying I owed them over 5 thousand pounds!

The question is, am I still legally obliged to repay the loan given that, as far as I'm concerned, I've settled in full?

Many thanks!

CLAPTON

a little light on details

what did your yearly statements say
what did the settlement figure letter say
why do they say you owe 5k more
what were the full circumstances

vickilew

Hiya, I didn't get a settlement letter, I was quoted it over the phone. The yearly statement does not show the five grand. As I went to University for two separate courses a few years apart, they are saying that the five grand was from the second course. But, I asked for a settlement of everything i owed the student loans company. Do i have a case for withholding payment? Vicki

vickilew

Anybody have any knowledge on this at all please?

jonesMUFCforever

vickilew wrote: »

Anybody have any knowledge on this at all please?

In simple terms you owe it and have to pay it.
I can understand your frustration about been given incorrect settlement figures but without something in writing you will find it very difficult to prove.

I would suggest that most people have one loan after doing one course and it is likely here that the person on the telephone did not look fully at the system holding your records but this is not a valid reason for withholding payment.

The only result of that would be a CCJ on your record and no credit for the next 6 years. They might also go for an attachment of earnings order.

Look at your paperwork - how much has been paid into your accounts from the Student loan company whilst you are studying?
You must have known there was a discrepancy!

CannyJock

vickilew wrote: »

Anybody have any knowledge on this at all please?

You need to pay it. On the bright side, repayments on student loan agreements taken out from 1998 onwards are 100% tax-deductible and the interest you're being charged is ridiculously low. If you've got the cash to clear it, don't, stick your cash in a high interest current account (B&B eSaver 2 @ 6.4%) and pay the minimum on your student loan for as long as you can.

Oh yeah, and the other bright side is that you must be earning over the threshold to start repaying in the first place.

CLAPTON

CannyJock wrote: »

You need to pay it. On the bright side, repayments on student loan agreements taken out from 1998 onwards are 100% tax-deductible and the interest you're being charged is ridiculously low. If you've got the cash to clear it, don't, stick your cash in a high interest current account (B&B eSaver 2 @ 6.4%) and pay the minimum on your student loan for as long as you can.

Oh yeah, and the other bright side is that you must be earning over the threshold to start repaying in the first place.

just to be clear , student loans are NOT tax deductable and the current rate of interest is 4.8% ... not bad but not rediculously low either

vickilew

ok, thank you for the help