# Student Loan in UK - procedure/repayment query?



## philcheetham (22 Jun 2010)

I graduated from a UK university back in 2005. I studied for three years and each year recieved a student loan of £3,000. I am from the UK, but moved to Ireland in 2007 and have lived here, with no intention of returning to England. 

My mum has recently recieved a letter from the student loans company in England, after not sending any letter for a number of years, stating that they are now chasing repayments on the student loan, and they are threatening her with baliffs if it is not repaid. I never knew anything about this - granted, I should have contacted them, but didn't - surely if they have not contacted me for a number of years they cannot just threaten this straight away? Can they? 

What is the procedure in terms of this student loan? I was trying to look on their website and got confused by how much i would have to pay back, over what period of time etc. It is highly likely given my current situation, in terms of my own income, family situation etc that i will be unable to pay this back. 


Any advice would be much appreciated. I am worried and my mum is very worried. 

Thanks

Phil

(Not sure if in right section)


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## bluemac (22 Jun 2010)

dont worry its nothing call them up tell them the situatuion they dont cahce the money for years as you have to earn over a certain limit which only very few do. on 3k your payments will be 60 a month max for the next 10 years or so. thats only if you earn over about 20k


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## philcheetham (22 Jun 2010)

bluemac said:


> dont worry its nothing call them up tell them the situatuion they dont cahce the money for years as you have to earn over a certain limit which only very few do. on 3k your payments will be 60 a month max for the next 10 years or so. thats only if you earn over about 20k



It is 3k a year for three years though, so 9k. Does this still go with what  you are saying? 
My mum worried me hugely when i skyped her today. I will see what they say when i ring them, as 60 a month would be manageable i think. Will update when i have spoke to them.


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## gerdywerdy (26 Jun 2010)

*Student loans company*

I dont know about more recent student loans but theones I had from UK you didnt have to pay them back until you were over an earnings threshold. You can defer them every year providing you can prove you are not making the reuired ammount. If you are making the required ammount I think you have to pay them back. They are threatening because they have not heard from you for a few years. Get in touch with them and explain your situation (whatever it is) and whether you are able to make repayments or not.

hope this helps
Ger


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## Madilla (26 Jun 2010)

My daughter has received student loan for three years also. I was curious as to how they follow up non UK resident students and their level of earnings.Although she is finished now over a year she has not had any correspondence from them which I had assumed she might have had by now.She is actually continuing her education and will be for two more years so in her case she would not be required to make any repayments yet anyway. So it seems that it could actually be years before any request for payment is made then.


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## philcheetham (28 Jun 2010)

Madilla said:


> My daughter has received student loan for three years also. I was curious as to how they follow up non UK resident students and their level of earnings.Although she is finished now over a year she has not had any correspondence from them which I had assumed she might have had by now.She is actually continuing her education and will be for two more years so in her case she would not be required to make any repayments yet anyway. So it seems that it could actually be years before any request for payment is made then.


 

I heard nothing from them for three years. I am still in education but this is part time, and i am working full time. I am terrified of speaking to them and for them to ask me for 200+ a month. I have written to them with all the relevant forms, as well as asking them to postpone the repayments until I am in a position to begin paying them off. 

Will keep you posted.


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## philcheetham (13 Oct 2010)

Just thought id bump this up. 


I am having a nightmare. 


Having spoken to the collections department they were asking for 156pounds a month. i told them i could not afford this, filled in all the relevant documentation (income/expenditure forms) and they then asked for 106pounds a month, even though i have said all i can stretch to, and i mean stretch, is 50. even this may be too high. they have now said my account is two months in arrears and they are passing it on to a debt collector. 

What do i do now? Seriously worreid about this.


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## philcheetham (15 Oct 2010)

anyone recommend anything / help?


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## hfp (15 Oct 2010)

what they're asking you for sound incredibly expensive.  Maybe the terms and conditions have changed, but for my loan taken out over 1999 to 2003 I'm only paying £3 a month on a balance of around £5000!! (although making overpayments to try and hack away at the balance!!) The threshold for my loan at least was that I had to be earning £15000 before I started to pay the loan back, and then the amount of the payment is determined by a percentage of any amount earned over the £15k.  Going by my salary/payment amounts, I'm paying back 16% of my salary amount that is over the threshold, but I think this percentage increases the more you earn. Not sure if the T&Cs differ across regions, but my loan was dealt with the Student Loans Company in Northern Ireland.


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## philcheetham (15 Oct 2010)

I earn a good wage, but have recently taken a 20% pay cut, as has my wife. we have other loans which before were difficult to deal with - this was even before the student loan comapny were asking for repayments. All i can physically afford is 50 pounds, yet they arre just saying no. 

i dont know what to do.


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## Thirsty (28 Oct 2010)

Have you started making payments at all?

If not, do so now, at the level you can afford; if you have already started payments then continue to do so and make sure you keep a record of it.

Write to them with your record of payments and confirm that you will continue payments at this level.

Half a loaf is always better than none.


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## pixiebean22 (28 Oct 2010)

Agree with Thirsty.  Make the payments you can afford until such a time as you can up the payments.  My suggestion would be to send them a letter to the effect of "repayments will be made on x date of each month in the amount of €x.  Please note that this is the highest repayment I can afford at this time.  Please acknowledge receipt of these instructions."

If they refuse an offer they haven't a leg to stand on if it goes to court, no judge will look kindly on any company/bank/debt collector/whatever trying to force a person to make repayments out of their capacity and refusing a reasonable amount.


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