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Is SF loan classed as income?

edited 30 November -1 at 1:00AM in IVA & DRO
5 replies 1.2K views
tiggy748_2tiggy748_2 Forumite
90 posts
edited 30 November -1 at 1:00AM in IVA & DRO
Im a first year student. Single. I have 17k of debt.
I work full time bank at the hospital. I can work 0hrs or 60hrs a week.

This year i had to pay student fees so used my maintenance loan to pay the fees and worked full time.

Im concidering an IVA. However i cant find out if my student loan would be taken into concideration as income.

The way i see it is that I have 3 options.

i can take the 9k loan out and work full time then use the 9k to offer a full and final settlement in a years time when all the payments have come through (The best option for me)

If they take it as income i would 100% not work full time as i cant see the point in breaking my back. Id just work the hours to pay the bills and IVA then sit back and relax a bit.

Or I can not take out another 9k loan and still work full time. Im already in about 40k having previously done another degree. I do have equity in my home so id like to get rid of the IVA asap.

Replies

  • foxy-stoatfoxy-stoat Forumite
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    An IVA is probably not the best option for you from what you have said.
  • Tbh i havnt said very much. Thats a huge sweeping statement to make.
    But yes an IVA is my best option.
  • edited 24 April 2019 at 5:15PM
    sourcratessourcrates Forumite, Board Guide
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    edited 24 April 2019 at 5:15PM
    Tiggy748 wrote: »
    Im a first year student. Single. I have 17k of debt.


    Im already in about 40k having previously done another degree.


    So which is it 17k or 40k ?


    Your attitude to this may be concidered a little "blazei" to be honest, entering an IVA is not a decision you should take lightly, and not many people who enter them can afford to "sit back and relax a bit" either, your student loan would be a qualifying debt in an IVA, but an IVA works by making fixed monthly payments, as your income is irregular, that may not be possible for you.

    In year 5 you would be expected to remortgage your house to benefit your creditors, if that is not possible, then the alternative is usually a further year of repayments.

    I`m not sure where the 2x 9k of loans are going to materialise from, perhaps you can elaborate a little on that ?
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  • foxy-stoatfoxy-stoat Forumite
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    Tiggy748 wrote: »
    Tbh i havnt said very much. Thats a huge sweeping statement to make.
    But yes an IVA is my best option.

    From what you HAVE said I would say an IVA isn't the way forward.

    Student loans are excluded from an IVA - you say you have equity, how much? Can you not down value your property and clear the £17,000 debt?

    Your unsecured debt doesn't seem high enough to consider an IVA.
  • PrettyKittyKatPrettyKittyKat Forumite
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    Yes a student loan is income in an IVA. If it is used to pay school fees then you can prove this and you won't be required to pay it in. However if it is for your living costs then it will be listed as an income on your income and expenditure. You would need to explain in the proposal which it is and how it will be dealt with.

    Given that you only have 17K worth of debt and the potential to get the student loan and save 9k within a year then I would recommend that you continue to make minimum payments and the offer full and final settlements to creditors in a years time when you have the 9k.

    Alternatively a debt management plan in the shortterm whilst you are a student, and then look into an IVA once you have qualified and have got a full time reliable job.

    IVA's are not meant for people with varying circumstances as there is little flexibility.
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