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Stressed about this student loan debt

(19 Posts)
rabbit12345 Fri 19-May-17 15:24:30

Sorry this is not really a AIBU but posting for traffic
I started a course with the adult college last year. I wanted to re-train for a new career now the children are older.
Being on a low wage I opted to pay by direct debit. I paid a 10% fee on sign up and then the college out sourced the finance to a new company.

I didn't hear from the company for a few weeks and so I called them. They said they could not help until the college had sent details over. I called the college to chase it up and they said it would be done in due course. I was told that I could pay over 8 months and this was what allowed me to take the course.

Long story short, after months of chasing through our tutor/college and company, it was finally sorted but I was told that as it has gone on for so long, I needed to pay over 3 months. There was no way I could afford it and so I advised the college of this and left the course.

Other people on my course were then given a subsidised figure due to being on low income but as I had already left (and an important exam had taken place) I was not considered eligible.

I am now being hounded by debt collectors (who are actually part of the same group as the company that provides the finance).

I have no way of paying the whole fee at the rate they want and I do not even have the qualification. I sent over the emails and proof of my chasing them and said that the reason I had to leave the course was because it became unaffordable but they say I have no argument and are now saying I have to go to court.

rabbit12345 Fri 19-May-17 15:26:17

Sorry that they will recover the sum through the court

luckylucky24 Fri 19-May-17 15:27:58

How much do you owe? Could you offer to pay off so much a month? They cannot just take you to court if you try to make a reasonable offer.

Kursk Fri 19-May-17 15:29:00

Can you arrange a payment plan. Don't let them force you to do anything.

Domino20 Fri 19-May-17 15:30:26

So did you leave the course before or after the loan company paid for it? Are you saying that they did pay for it but 5 months late?

rabbit12345 Fri 19-May-17 15:39:27

I am not sure how it works at the college end. We were asked to pay 10% at signup and then the rest was to be spread over 8 with a £6 per month charge. I do not think it was a finance agreement as such as previously the college arranged monthly payments but started to outsource it this year.

It took this long for the college to send the details for our class to the company to enable them to set it up.
Once the error was realised, the college subsidised everyones course by reducing the overall cost by up to 75% but because I had left, I was not eligible for this. (The college subsidised the same week that I left but I only found out recently when I met up with some course friends for a night out).

Domino20 Fri 19-May-17 15:41:23

Why did you leave though?

rabbit12345 Fri 19-May-17 15:49:33

Because I was told that I could no longer pay over 8 months and it would have to be 3 months as payment was needed by the end of the course or I would not be able to qualify.

I know I should have put the extra away and I did as much as I could but we have been living hand to mouth since my husbands business went under and the money was just getting dipped into while it sat in the bank.

rabbit12345 Fri 19-May-17 15:52:12

I think I panicked as was under so much stress with money.

I should have stayed as both the course would have been partially funded and I would have a qualification now. I am kicking myself.

Mrsmadevans Fri 19-May-17 15:58:55

I would get onto the citizens advice asap they will sort it out for you my dear

Mrsmadevans Fri 19-May-17 15:59:45

www.citizensadvice.org.uk/debt-and-money/

Mrsmadevans Fri 19-May-17 16:00:18

Good luck op

luckylucky24 Fri 19-May-17 16:01:51

So this course cost about £60? They won't be taking you to court for less than £1K.

luckylucky24 Fri 19-May-17 16:02:56

Or is the £6 a month on top of the course fee?

rabbit12345 Fri 19-May-17 16:05:48

£6 a month collection fee by the company. It is not showing as interest which makes me think they were providing a collection service for the college rather than finance.

The debt collectors and the fee collection company seem to be one and the same.

unapaloma Fri 19-May-17 16:06:54

Lucky, i think the £6 pcm is the charge for the loan arrangement, on top of the course cost.

luckylucky24 Fri 19-May-17 16:09:30

How much do you owe?

Allthebestnamesareused Fri 19-May-17 17:08:04

But you incurred the full cost of the course whether you stayed or left because by taking a place it prevents them taking on another student. You do have a finance agreement - one which includes the £6 per month charge. Also you paid the 10% up front. You will owe this money but the best way to approach it is to go back to them and say I can only afford £x per month.

Please don't ignore them or they will take you to court and you'll end up with a CCJ against you.

Allthebestnamesareused Fri 19-May-17 17:08:22

Can you just go back on the course anyway?

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