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Original poster

Can the Student Loan Company still chase me for this?

26 replies

oneofthosedays · 30/07/2010 22:53

In 2002 I started a foundation year so I could access the degree I wanted to do. I completed that year of study and borrowed just over £3k or whatever the full entitlement was then. I didn't end up progressing onto the degree course as DD happened and they changed the degree, it wasn't what I wanted to do anymore. I had statements from them for the following couple of years I think but both myself and my parents both moved house since then (I was living at home when I did the years study).

I've not had anything from them for perhaps the last 5-6 years, parents mail was diverted when they moved but I neglected to inform SLC of this and my further change of address and name change due to marriage.

Does anyone know whether this would be something which could affect my credit in any way or is there a possibility that this could be statute barred (or whatever the term is)?

OP posts:

scurryfunge · 30/07/2010 22:58

Did you borrow money and have you paid it back?

PrettyCandles · 30/07/2010 23:01

You borrowed money. Surely, therefore, you have to pay it back at some point?

Original poster

oneofthosedays · 30/07/2010 23:03

I did borrow the money but I have never been above the income threshold to qualify to pay it back - I'm not sure whether they take a DH's income into account either.

OP posts:

CerealOffender · 30/07/2010 23:08

it is only your income that counts but you have to deferred every year. yes this will affect your credit rating as you are not communicating with the loan company

gomez · 30/07/2010 23:09

SLC data does not form part of your credit file, so no there will be no black mark there to worry about

It will not however go away and generally speaking if you earn above the threshold at any point before retirement you re-payment will start.

HTH

CerealOffender · 30/07/2010 23:11

i didnt realise that gomez

Original poster

oneofthosedays · 30/07/2010 23:12

Thanks for the info. My wage is unlikely ever to go above the threshold unfortunately! So does statute barred thing not count with the SLC?

OP posts:

suzikettles · 30/07/2010 23:17

Statute barred doesn't count with SLC and also if you've defaulted on the loan (as you have) they can refuse to defer it based on your income as the entire amount will be arrears rather than loan payments.

You can probably come to some arrangement with them but unless you go to court they're unlikely to let you go back to deferring.

They will find you eventually I'm afraid. If you're not planning on going to them then I'd start putting a bit of cash aside each month against the day that they catch up with you.

gomez · 30/07/2010 23:19

CerealOffender - rules are different for old and new style I think - with older ones if you don't ask for a deferrment then they will chase you and this may then be on your credit file as a late payment as they will auto assume you should be paying IYSWIM.

Bu with the newer ones as the deduction is made at source that problem doesn't exisit - even if you don't tell your employer you have a student loan the SLC have access to HMRC records and you will get caught. But that 'not telling' can't be recorded on your credit file.

No, sorry avoiding contact with SLC isn't enough to get rid of the debt.

suzikettles · 30/07/2010 23:20

I'm going based on my own experiences by the way but my loan dated back to 1991 and I had to fill out a deferment form each year which couldn't be backdated hence the arrears and income not being taken into account. That might have changed.

suzikettles · 30/07/2010 23:21

xposted - looks like it has changed then which is good news for you. I'd get in touch with them if that's the case as you'd have nothing to lose.

gomez · 30/07/2010 23:24

Suzi sorry I hadn't picked up that she had defaulted just not kept in touch - I was reading it that her income level hadn't exceeded the repayment threshold and assuming this was the case or SLC would have found out via HMRC by now.

gomez · 30/07/2010 23:26

Ah x-post Suzi rules changed when new style loans introduced from 1998/1999. Much lower income threshold and payments deducted at source now.

Rafwife · 30/07/2010 23:27

The student loans are always claimable even from back then, it won't be written off.

belledechocolatefluffybunny · 30/07/2010 23:27

IIRC, if it's been 21 years since you took the loan out then it's wipped. This only applies to older loans (pre 2007). They will send it on to collection agencies, they are given 3 months to get you to cough up before it goes back to the student loan company before it's sent out again. A student loan doesn't go on your credit file.

gomez · 30/07/2010 23:30

www.slc.co.uk/about%20student%20finance/products%20and%20services/write_off_terms.html

From the horses mouth so to speak re: write-off terms. See in particular:

1.Lending to other customers is written off at age 65. This applies to account holders who:
?obtained a student loan in 2005/06 or in some earlier year, and who are continuing students.

Stephief · 30/07/2010 23:34

Hi,

Even if you have defaulted, you can still apply to have it deferred. I moved house a few years back, after having applied for deferrment that year (I moved in may, deferred in march giving them new address etc) and yet for 2 years after they didnt send me deferrment papers (still got statements etc, though they claim they didnt have my nw address!) and then I started getting abusive letters about being in arrears (currently several thousands, despite being on IS the whole time nowhere near the earnings threshold!) I was seriously ill during this time so will admit I hadnt even noticed the time had come and gone to defer! Anyway, the loans are deferred now, though they are still trying to get the arrears out of me! I am still waiting for them to take me to court (they have been threatening for years now!) so they will stop harassing me for the so called arrears! It still hasnt happened though, and none of this is showing on my credit file so I am not overly bothered!

Original poster

oneofthosedays · 30/07/2010 23:48

Right, so obviously the loan will never be statute barred from what you have all said. Which is fine, I don't have a problem with paying back any money which I have borrowed - I just stupidly neglected to inform of my change of address and never really thought about it since until recently.

So my best bet would be to get back in touch do you think? And try to get this deferred? And I could still owe them quite a chunk even though I have never earned over £15k in the last 8 years because I haven't deferred? My earnings have been closer to £8-9k mark but some years I have earned nothing due to giving up work for the kids for a brief period.

I feel like if I get back in touch now I'm going to be in a big heap of trouble, we are in the middle of moving house and there's not a scrap of cash to spare (which is none of SLC's concern obviously as they have their rules which I have naively broken)

OP posts:

belledechocolatefluffybunny · 30/07/2010 23:50

You won't be in trouble, they just want the money.

Original poster

oneofthosedays · 31/07/2010 00:29

Ok, I've been doing some reading up on direct.gov re student loans for courses staring after '98, it doesn't mention anything about having to defer the loan each year, it just says that if your wage goes above the threshold that it will just automatically be taken out as the HMRC keep tabs on stuff like this?

I'm a bit confused now, I don't mind getting back in touch with them as long as I won't have anything to pay until I earn enough, but if they're going to be asking for a chunk of money back, we just don't have anything at the moment.

I've not particularly made myself untraceable or anything, part of me thinks that I would have had a phone call or letter by now but because I'm under the threshold (by a mile) then it's ok? Or is that just wishful/head-in-sand thinking!

OP posts:

Original poster

oneofthosedays · 31/07/2010 00:47

Found this link too - www.moneysavingexpert.com/loans/student-loans-repay

Any more advice will be much appreciated

OP posts:

gomez · 31/07/2010 09:41

Oneofthosedays - you do not need to defer your loan each year that only applies to old style mortgage-type loans from before 1998. If you have never earned more than £15k pa since you took out the loan then your repayments are not due to have started. You will not be in any trouble nor will they demand any money from you at this point.

You need to ensure any employer knows you have a student loan and if/when you reach the threshold your repayments will start.

I think many of the comments above re: deferrment are based on older loans and do no apply to you. Just update your address, tell your employer and forget about it until (a) you retire or (b) you earn more than 15k p.a.

Don't worry.

Original poster

oneofthosedays · 31/07/2010 12:11

Phew, that's a huge weight off, just need to let them know where I am now!! Thanks for the help.

OP posts:

bibiane · 16/11/2010 22:54

after 6yrs its statute barred.

bibiane · 16/11/2010 23:02

My advice is don't get in touch and wait for them to take you to court. Any contact is seen as an acknowledgement of the debt.

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