Student Loan - left university, heard nothing more!

netherwood123

Has anyone else experienced this - my boyfriend left university 6 years ago having started in 1998. He borrowed about 8k from SLC and has literally never heard from them since he left - they have his parent's address and have never contacted him there either. He earns 40k so whatever the system he was under (he can't remember) he should be paying it back surely?
It is obviously appealing to hope that the debt has simply 'disappeared' but I am worried that one day this will come back to bite him.
Anyone had anything similar?

prudentsaving42

It doesn't matter if they come back, just keep £8k in a savings account, because the interest is always higher than student loans' interest. No worries. At £40k p.a., he's hardly going to have troubles paying it off. Do remember that if the debt is not paid after 25 years (19 left), it is written off...

CLAPTON

Much of the UK tax, benefit and Student Loans systems start of the assumption that people are honest.
Staggering isn't it?

Flower08

I am at uni myself and once a year i have a had statement telling me how much they have leant me to date (never requesting payment) - i thought they just immediately take money straight from ur wages when u earn more than £15,000, along with tax and national insurance. So chances are he is paying it back without even realising. Tell him to check his payslips etc it should say on there - although it is strange that he has not heard anything off them.

netherwood123

Yeah I know - he is bad really! Also he is rubbish with money so 8k in an account is a dream - that is a good point though - just have the money there in case...now to convince him...

CLAPTON

nlshepherd wrote: »

I am at uni myself and once a year i have a had statement telling me how much they have leant me to date (never requesting payment) - i thought they just immediately take money straight from ur wages when u earn more than £15,000, along with tax and national insurance. So chances are he is paying it back without even realising. Tell him to check his payslips etc it should say on there - although it is strange that he has not heard anything off them.

Not so, as I've already said they assume you are honest. You have to tell your employer when you start work that you have a student loan (a box on the P60). However the OP loan may be under the old scheme which works differently.

St8_2

Its strange that they have never even sent statements, even if you have to be honest and tell your employer to start taking student loan repayments.

I'm currently at uni and for the entire first year all student loan letters were being sent to liverpool university?! I have no idea why. I don't live in liverpool or anywhere near and I never even applied to that uni. I logged into the student loan account online where you can view correspondence and thats where I realised. So maybe statements have been sent to a different address?

But I guess your bf will have a hefty amount of backed dated repayments to make. That 8K has been piling on interest for the last 6 years. Seeing as student loans are void after 25 years though, what will happen if you wait another 19 years and then ring them up and ask "I never made a repayment on my student loan or received a statement, just ringing up now to ask why?"

*srjp*

I believe there are 3 different schemes in operation from the SLC. I started uni in '99 too but only took a loan in 2001, and know there was some sort of changeover around then because I pay back at a different rate on a different earnings amount to a friend who took his before. Obviously the loan people could tell you which but asking them will only bring you to their attention so perhaps not!

http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/index.htm

Kavanne

I am new system but I had to inform the SLC that I was working and who for before repayments could start...

frivolous_fay

You're obliged to make sure SLC have your current address details, and correct bank details. I finished uni in '99 and the repayments (if I was making them) would come out of my bank account, not my pay slip. I know newer loans come out of your wages, but I don't know when this changed.

I would get on to SLC sharpish to make sure they know everything they need to. I believe they can fine you if they don't have correct details.