Student Loans Company Agressive Letter

FoxEye · 8 Jun 2015 at 09:45

Bad news for me just keeps coming this week.

Previously I'd believed that you would only be required to make SLC repayments if you were in work and earning more than 10k (was 15k). The money is taken automatically through PAYE.

Now I lost my job in April, and have just received a letter from the SLC. They want to know how much money I have in savings and will determine whether to ask for the outstanding balance back! The balance is something like 15k.

I'm not sure if this is something to do with the govt's "balance the books" approach, but demanding this back from someone who isn't in work seems a bit bloody harsh.

I really don't want to tell them how much savings I have, but the letter states if I don't they will just demand the maximum payment back regardless?

So much for only repaying the loan if you earn a certain amount, these guys are getting aggressive now. Thanks, Cameron.

P.S. I never graduated, so I don't earn much anyhow.

Kemik · 8 Jun 2015 at 09:51

They'll want to know if your interest is more than the minimum threshold. I realise this is unlikely but I suppose it is to make sure you're not living off the bank of mum and dad and able to pay. They won't be asking for the full amount back in one go.

When did you graduate? For me (2009), I pay 9% on anything over £15k.

FoxEye · 8 Jun 2015 at 10:02

Didn't graduate. Left uni in 2003.

I mostly don't want them to know how much money is in my account. They are asking for 3 months of bank statements. Perhaps a letter from my bank to say I haven't received BACS payments since March would suffice?

Dis86 · 8 Jun 2015 at 10:04

So what you're saying is you don't want to pay back the money you owe?

FoxEye · 8 Jun 2015 at 10:07

Dis86 said:
So what you're saying is you don't want to pay back the money you owe?

No, I'm saying if they want it back now then the loan was mis-sold to me in the beginning.

They said I wouldn't pay back anything if I wasn't earning 15k or more, and that small payments would be taken from my earnings.

This letter says otherwise.

Nice Daily Mail style reply tho.

Delvis · 8 Jun 2015 at 10:10

FoxEye said:
No, I'm saying if they want it back now then the loan was mis-sold to me in the beginning.

They said I wouldn't pay back anything if I wasn't earning 15k or more, and that small payments would be taken from my earnings.

This letter says otherwise.

Nice Daily Mail style reply tho.

I suggest you find that statement in writing, otherwise you need to bend over

Skidder · 8 Jun 2015 at 10:10

Do you have a large amount of savings?

Terminal_Boy · 8 Jun 2015 at 10:13

FoxEye said:
No, I'm saying if they want it back now then the loan was mis-sold to me in the beginning.

They said I wouldn't pay back anything if I wasn't earning 15k or more, and that small payments would be taken from my earnings.

This letter says otherwise.

Nice Daily Mail style reply tho.

Nice Sense Of Entitlement Weekly response.

matt_fsr · 8 Jun 2015 at 10:15

Yeah, I was on the understanding that you only repaid the loan if you were earning? :confused:

I finished Uni in 2004, so should be on the same conditions I'd have thought.

Can you post the letter up here? (Info removed of course)

subbytna · 8 Jun 2015 at 10:16

FoxEye said:
No, I'm saying if they want it back now then the loan was mis-sold to me in the beginning.

They said I wouldn't pay back anything if I wasn't earning 15k or more, and that small payments would be taken from my earnings.

This letter says otherwise.

Nice Daily Mail style reply tho.

It wasn't mis-sold to you. You gladly thought "wahey money to spend in freshers week" and signed the paper work...like all students do. If you have savings then just pay off what you can. You have to pay it back at some point unless you're one of these people that just doesn't want to pay back the money...you got...as a loan....regardless of where you got it.

Surfer · 8 Jun 2015 at 10:17

Terminal_Boy said:
Nice Sense Of Entitlement Weekly response.

How so? He's wanting to abide by the letter and rules which SLC laid out to him and i dont think its unreasonable to expect SLC to do the same.

Basher · 8 Jun 2015 at 10:22

subbytna said:
It wasn't mis-sold to you. You gladly thought "wahey money to spend in freshers week" and signed the paper work...like all students do. If you have savings then just pay off what you can. You have to pay it back at some point unless you're one of these people that just doesn't want to pay back the money...you got...as a loan....regardless of where you got it.

If it was sold as being paid back when you earn (which it almost certainly was) then he was mis-sold.

FoxEye · 8 Jun 2015 at 10:22

Skidder said:
Do you have a large amount of savings?

Enough to repay the loan in full. Put it this way, in the last 4.5 years I've saved all my earnings from my ~min wage job. I've not gone on holiday, I've not gone out, I've not bought things for myself except a cheap car (which is essential these days).

Thus I've saved enough for a deposit on a house.

But the SLC could see that this is enough to repay the loan, and frankly I don't think I should have to tell them how much money I have.

The terms of the loan repayment were that I wouldn't pay anything unless I was earning 15k.

As for the antagonists in this thread: imagine a mortgage. When you take out a mortgage you agree repayments, and both sides stick to it. The bank doesn't suddenly say "Right we'll have all our money back now, thanks." So why should this be different?

Repta · 8 Jun 2015 at 10:25

Basher said:
If it was sold as being paid back when you earn (which it almost certainly was) then he was mis-sold.

Not saying the op didn't but i doubt most people read the full terms of student loans. I know i certainly didn't and don't know anyone that did. Could quite easily say something about savings in them.

FoxEye · 8 Jun 2015 at 10:26

matt_fsr said:
Yeah, I was on the understanding that you only repaid the loan if you were earning?

I finished Uni in 2004, so should be on the same conditions I'd have thought.

Can you post the letter up here? (Info removed of course)

I've sent it back with my response already. (Even had to use a stamp!)

I guess they need to have some mechanism to prevent fraud (ie people working for cash in hand). But on the other hand, the letter clearly says if I don't turn over evidence of all my accounts to them, they will demand repayment. A bit harsh!

And it also says if I do turn over all evidence of accounts, they will calculate my repayment amount based on the savings I have.

So the thing about needing to be in work is bogus!

Glaucus · 8 Jun 2015 at 10:26

How's it mis-sold, people only hear about the normal t&cs as most people will be working, that doesn't mean there aren't other t&cs that are less known.
Depends exactly when you took out the loan, however.

If you have unearned income of more than £2,000 a year, for example interest on stocks, shares or savings, you may have to make additional student loan repayments.

HM Revenue & Customs will advise you if you need to make any payments directly to them in respect of student loans once they have assessed any Self Assessment tax return you submit to them.

cheesyboy · 8 Jun 2015 at 10:28

Phone them up. They can't demand payment, even if your employer cocks it up and fails to make the deductions. You pay 9% over the starting threshold (circa £16k)

Basher · 8 Jun 2015 at 10:30

Glaucus said:
How's it mis-sold, people only hear about the normal t&cs as most people will be working, that doesn't mean there aren't other t&cs that are less known.
Depends exactly when you took out the loan, however.

Your quote is more about the interest than using the savings to pay the loan back ...

SO I guess the question to the OP is - do you savings earn you more than 2k in interest per year?

Glaucus · 8 Jun 2015 at 10:31

Basher said:
Your quote mentions nothing about savings ...

Are you blind?

If you have unearned income of more than £2,000 a year, for example interest on stocks, shares or savings, you may have to make additional student loan repayments.

HM Revenue & Customs will advise you if you need to make any payments directly to them in respect of student loans once they have assessed any Self Assessment tax return you submit to them.

Hrmc/slc will still need to see evidence.
If you dint follow rules, then general rule if thumb with any sort of loan, is they request full payment immediately.
It would help if OP actually posted letter up.
As it could be only repay full amount if he breaks the agreement.

alx · 8 Jun 2015 at 10:31

This is from the SLC website:

Unearned income

If you have unearned income of more than £2,000 a year, for example interest on stocks, shares or savings, you may have to make additional student loan repayments.

HM Revenue & Customs will advise you if you need to make any payments directly to them in respect of student loans once they have assessed any Self Assessment tax return you submit to them.

So it looks like if you are below the salary threshold, you may have to repay if you receive more than £2000 a year from interest on stocks, savings or shares (which makes sense if you stop working and live off the interest of a large capital sum).

It doesn't sound like they want to take your savings or anything so I wouldn't worry.