Student Loans Company Agressive Letter

Good luck with this mate. I have had nothing but issues with them over the years and it is only this year I decided enough was enough and removed them off of taking payment through PAYE and now give them £350 a month DD instead which means ill be done come December, even doing this was a nightmare and for moths they were taking both the DD and the money from my salary.

All in all they are easy to deal with but difficult when trying to get things done. Even still I wouldn't be trying to pull the wool over their eyes as others have suggested. They have more power than you may give them credit for, give them everything they need and make the arrangements to pay them their money. For what it's worth they asked for similar from me last year and I was just completing on a property and had almost £50k sitting there.
 
yup, what peace of mind do you get from paying off the student loan early - the interest is ridiculously low and your repayments are based on, essentially, what you can afford to repay at the time - I don't think it represents a burden or worry to anyone, in fact the optimum solution for most people would be to have borrowed the max each year even if not required and invest it
 
George Hincapie said:
If you have the money to repay the loan outright, why wouldn't you do that? Don't you want the peace of mind of being debt free?
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Its Not a debt, Well not in the normal sense.
Its more of a Graduate Tax, You only pay when you earn enough.
Much like... Tax.

Doesn't show on credit reports... blah blah
 
George Hincapie said:
If you have the money to repay the loan outright, why wouldn't you do that? Don't you want the peace of mind of being debt free?
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Because it's the least financially astute option - the interest rate on the student loan is set at RPI or base rate+1%, whichever is lowest. This is always less than the interest you'd earn by investing the money in a decent savings account, therefore the most financially rational move is to invest the money and pay it off through your salary in the usual manner, not by paying it off in full in one go.
 
bloodkil said:
Well I'm just about to start uni was told we would not have to repay unless you earn over £21k per yr. Can't imagine it being any different then. I'd get on the phone and ask them, probably the best way to get some answers.
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It was completely different then.
Also FoxEye, you might be wrong about the 30 years part, I thought that applied to students who graduated and had got the new loan system from 2010 onwards, not a 12 year old loan such as your own, when you didn't complete the course.
I might be wrong.

I also think there are different rules for people who failed to graduate.
 
chief barker said:
http://forums.overclockers.co.uk/showthread.php?t=18613933&highlight=50k+plan

Yes he was on 27k.
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At the end I was on 27k. Then my contract wasn't renewed (laid off in April).

For most of the time I was on £15k, a little more than nat min wage.

So yes, it took me 4.5 years of hard saving and not spending hardly anything, but now I have roughly enough for a deposit. The SLC don't need to know this, however. Under the terms of the loan as explained to me I don't need to pay it off, probably ever.
 
Hikari Kisugi said:
It was completely different then.
Also FoxEye, you might be wrong about the 30 years part, I thought that applied to students who graduated and had got the new loan system from 2010 onwards, not a 12 year old loan such as your own, when you didn't complete the course.
I might be wrong.

I also think there are different rules for people who failed to graduate.
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I'm not sure anyone knows the precise rules! Couldn't find a precise explanation anywhere, especially as like you said the rules have changed over time!
 
What are you worried about?

It's been posted about a million times in here. They're just checking to see if you are earning over £2k interest on your savings, which you won't be.

Just give them the ISA statement or whatever and that will be the end of it.
 
FoxEye said:
At the end I was on 27k. Then my contract wasn't renewed (laid off in April).

For most of the time I was on £15k, a little more than nat min wage.

So yes, it took me 4.5 years of hard saving and not spending hardly anything, but now I have roughly enough for a deposit. The SLC don't need to know this, however. Under the terms of the loan as explained to me I don't need to pay it off, probably ever.
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so you plan to avoid earning above minimum wage for the rest of your life?

Not too long ago you were looking for a plan to earn a relatively large amount. Is your level of ambition linked with whether you have to pay back the money you borrowed?
 
Skidder said:
so you plan to avoid earning above minimum wage for the rest of your life?

Not too long ago you were looking for a plan to earn a relatively large amount. Is your level of ambition linked with whether you have to pay back the money you borrowed?
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Dis86 said:
The term is that you have to wait more than thirty years. Are you planning on earning less than 21k? Thought your plan was 50 in 5 years?
I think you're very confused!
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Even if I earned over 21k there is still a good chance that I would never fully repay the loan/not-a-loan, as they can only take 9% of anything above that.

So, eg at 25k they could take 9% of 4k, or roughly £360. Then it would take 45 years to repay the loan (I'd be 80!). So at the nat average wage I'll never repay it. On £30k it'd be 20 years to repay, taking us over the 30 year expiry threshold.

So you can see there are several ways I could earn more than min wage and still not pay this thing off.

I can't plan to earn 50k. But this is really neither here nor there in relation to this thread.
 
FoxEye said:
Funny you should say that! I've already linked this once in the thread...

http://www.telegraph.co.uk/finance/...ime-to-stop-calling-student-loans-a-loan.html
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For loans since 2010.
Not yours.

-edit
How much of a loan have you outstanding OP?
Fees were not that high 12 years ago, there was a maintenance loan part as well, how many years did you complete before dropping out?
You made a suggestion of being 80 to pay it off, but you can't have 42K in a loan from 12 years ago. How much is your outstanding balance?
 
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