A thought - Statute Limitations and Student Loans

oscar52

I dont know why this just popped into my head, but its got me wondering.

On the current system of student loans, you only pay if you earn over 15K a year. Assuming that you earned less than that for 6 or seven years after graduating and had no form of contatc with them, where would you stand with regards to Statute Limitation? Or has the SLC wangled a little bit into the small print to expemt itself from the above act?

postingalwaysposting

I would imagine it would be in the small print of the loan... I dont think the government are that gullable :rotfl:

oscar52

Theres always hope (not that i am trying to duck out of paying mine)

fermi

From: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

Student loans

Student loan agreements are simple contracts and this gives the Student Loans Company (SLC) six years from the date you last paid or acknowledged the debt to go to court to enforce the agreement. There are two sorts of student loans and different rules apply depending upon when you took out the loan.

Old style student loans

Old style or 'mortgage' student loans are consumer credit agreements. Payments cannot automatically be deducted from your wages. The SLC has to go to court before they can enforce the debt against you. This means that the Limitation Act can apply if you have not paid or acknowledged the debt for over six years.

WARNING Asking for the loan to be deferred could count as acknowledging the debt and start time running again.

New style student loans

From September 1998 new style or 'income contingent' student loans include rules to say that repayments are automatically deducted directly from your wages or through your tax return if you are self-employed. This means that the SLC are still allowed to take money from your wages for a loan over six years old as they do not have to go to court to do so.

postingalwaysposting

oscar52 wrote: »

Theres always hope (not that i am trying to duck out of paying mine)

Well yes, i would love someone to prove me wrong.

Gemmzie

They contact you with a statement every year and you have to keep them informed of your address and income.

catw75

You would ask for the repayments to be deferred every year while not earning enough to repay. Each deferment application acknowledges the debt. If you didn't bother trying to defer and tried to avoid the SLC instead, they would go for a CCJ and then the Limitation Act would no longer apply.

fermi

I've heard of one of the "old style" loans reaching the "statute barred" stage before, but I seem to remember that was mostly down to the SLC's own incompetence.:rolleyes:

oscar52

Gemmzie wrote: »

They contact you with a statement every year and you have to keep them informed of your address and income.

Just because they have sent statements doesnt mean there has been contact. Also, I have NEVER informed them of my income (never been advised I had to do so)

oscar52

catw75 wrote: »

You would ask for the repayments to be deferred every year while not earning enough to repay. Each deferment application acknowledges the debt. If you didn't bother trying to defer and tried to avoid the SLC instead, they would go for a CCJ and then the Limitation Act would no longer apply.

As far as I am aware, with the new style loans, you dont have to request a deferral, that was only with the old system.

ZTD

You only need to inform them of your income if you wish to defer.