Taken to court for student loans while on ESA

zafreenfarooque · 5 November 2018 at 9:26PM

Dear all,
Would really like some help please!
I did my uni course during the 90s, but due to mental health and other health problems I have been unable to work, so now on ESA.
I got a letter from some co. from northants business centre saying I need to pay back £11k, which I just don't have as all my income is from benefits.
Anyone know what I can write in the defence section of court forms?
Please help if you can- many thanks

twhitehousescat · 5 November 2018 at 9:49PM

when was the last time you were in communication with the lender / loan co

was this official court papers , who is the company that are claiming 11k

zafreenfarooque · 6 November 2018 at 11:51AM

Hello
I had a solicitor letter about 2 weeks ago which I ignored thinking it was a scam.
The co. are called erudio student loan co, and the paperwork headed 'in the county court business centre'?..I can see a circle stamp with the crown symbol and county court on it.
I thought old student loans were written off?
Any way not sure what to do...apart from in the defence section writing I am ill- list conditions, doing the same for my disabled child, and stating all income is benefits?
I dont mind paying them something if I ever get a job, but right now even paying them £1 a month is difficult...

Pixie5740 · 6 November 2018 at 11:58AM

zafreenfarooque wrote: »

Hello
I had a solicitor letter about 2 weeks ago which I ignored thinking it was a scam.
The co. are called erudio student loan co, and the paperwork headed 'in the county court business centre'?..I can see a circle stamp with the crown symbol and county court on it.
I thought old student loans were written off?
Any way not sure what to do...apart from in the defence section writing I am ill- list conditions, doing the same for my disabled child, and stating all income is benefits?
I dont mind paying them something if I ever get a job, but right now even paying them £1 a month is difficult...

Does any of the following apply to you? If so have you communicated this with Erudio/Student Loans Company?

Under The Education (Student Loans) Regulations 1998, lenders will cancel your liability to repay if you:

Die.

Can show the lender you get a disability-related benefit and because of this disability you're permanently unfit for work.

Are not behind on any repayments under any agreement for a student loan and were under the age of 40 when your last agreement for a student loan was made and you reach the age of 50, or when the last agreement for a student loan has been outstanding for no less than 25 years, whichever is the sooner.

Are not behind on any repayments under any agreement for a student loan and were aged 40 or older when your last agreement for a student loan was made and you reach the age of 60.

Have you been deferring your loans?

Since there is an upcoming court case it might be a good idea to contact one of the debt charities: CAP UK, National Debtline or Step Change.

zafreenfarooque · 6 November 2018 at 2:45PM

Hello
No I haven't mentioned about the disability but would do so under the defence section of paperwork, which is the only one that applies to me.
I haven't been deferring the loan, just haven't heard anything about it until very recently
Yes, I'll try and contact a debt group
many thanks

ruperts · 6 November 2018 at 2:55PM

Who did you take the loan out with?

If it was the Student Loans Company then I wouldn't expect to receive anything like this as you only have to start paying it back once you're earning over a certain amount, and I believe that was also the case in the 90's.

Pixie5740 · 6 November 2018 at 3:24PM

ruperts wrote: »

Who did you take the loan out with?

If it was the Student Loans Company then I wouldn't expect to receive anything like this as you only have to start paying it back once you're earning over a certain amount, and I believe that was also the case in the 90's.

If you earn below the threshold you have to apply to defer the loan each year. The OP did not do this which is why Erudio are now taking the OP to court.

sheramber · 7 November 2018 at 11:25AM

If you don't defer and don't pay then you are in default of your contract that you signed when you signed up for the loan.

If you default then the whole amount becomes repayable immediately.

You need to get advice.

zafreenfarooque · 7 November 2018 at 1:23PM

Thanks for all the replies
The original loan was with the SLC- now erudio people
I may have had a letter in the past but can't remember as sometimes its difficult doing basic things with my health problems.
I have had conflicting advice- CAB suggest paying £10-15 per month/ my housing adviser saying go to court and explain you have no assets and offer no more tham £1 a month??

zafreenfarooque · 9 November 2018 at 10:18AM

Short answer is no.
My housing income advisor told me to just offer the £1 per month goodwill gesture and freezing of interest.
He said if they don't accept, they are looking at around £200 to take me to court, and most probably the Judge will look at my medical conditions as well as lack of assets and let me pay the £1 a month.

Lungboy · 9 November 2018 at 1:28PM

If you haven't acknowledged the debt then it might be statute barred. You need to work out exactly when you acknowledged the debt, either with Erudio or The SLC.

Also it might be time barred, when exactly in the 90s did you take your final loan?

I think the disability line is unlikely as I'm guessing from the fact you are on ESA you're deemed fit to work, rather than being permanently unfit to work.

Taken to court for student loans while on ESA

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