Student Loans Company Agressive Letter

[Nitefly]

Unfortunately, many people see their student loans as something they don't have to pay back.]Technically, if they satisfy certain criteria within the T&C's that is correct. However, modifying your lifestyle to ensure you always fall below the repayment threshold is fraudulent in my opinion and not really any different to tax evasion.

I think that's a bit strong. I don't think that modifying your lifestyle in that way is fraudulent because then you live a life you much sustain on payments that are indeed below that threshold and it becomes an informed financial decision (albeit an arguably immoral one).

If I were a higher rate tax payer, I could opt to put the proportion of my taxable income that would fall within that higher rate bracket in my pension pot (before tax is deducted via PAYE), thereby putting the gross funds into my pension pot and only being taxed at the lower rate on my annuity. If I were to do that, I would effectively dodge the higher rate bracket. Similarly, I do not think that is fraudulent, but an informed decision.

Of course, claiming that you are earning X to HMRC or creditors when you are in fact earning Y, is bona fide fraud.

 

[Macro]

Great another morally bankrupt faux socialist.

Indeed, "I'm surprised" said no one ever on finding out that for a staunch unionist it seemingly all comes down to getting their snout into the trough as well.

 

[Pudney]

It would be interesting if that was ever taken to court - £150 for a standard letter appears to be rather expensive and it's potentially questionable that the SLC should make a profit from administrative letters. Mind you if they charge £150 for a letter then what would my time be worth to write back to them - maybe there's an offset agreement that can be reached...

Which is all well and good if SLC were a commercial organisation and bound by commercial law, however, they're a governmental organisation and backed by Statutory Instrument. Which means it IS a penalty charge, not an administration charge. Challenges would have to be by European human rights regulations.

Oh, and it also gives them the right to ask for information.

 

[Zethor]

In the end, many more people lose out. Be it their children, or the employers that have to import talent from abroad or the economy because lack of skilled people means investors invest elsewhere, or the overall populace that have to be taxed more to cover the cost of people going to uni on a jolly and deciding not to pay back their student loan.

As far as the bigger picture is concerned, it is particularly damaging long term.

The state does not lose out even if some loans never get repaid because it offers cheap loans which gives many people, who would otherwise have menial jobs, the chance to become professionals who earn more and pay more taxes. In Germany, university is free so the default rate could be described as 100% yet the state is in the green if 42% of the students work in the country for just 5 years after graduation.

 

[Deleted member 66701]

Indeed, "I'm surprised" said no one ever on finding out that for a staunch unionist it seemingly all comes down to getting their snout into the trough as well.

Wow - muchos butt hurt in this thread.

 

[Pudney]

Wow - muchos butt hurt in this thread.

You are of course right, I for one am not shocked to see a hypocritical vocal unionist.

Edit: some people may be shocked by it though.

 

[CREATIVE!11]

The state does not lose out even if some loans never get repaid because it offers cheap loans which gives many people, who would otherwise have menial jobs, the chance to become professionals who earn more and pay more taxes. In Germany, university is free so the default rate could be described as 100% yet the state is in the green if 42% of the students work in the country for just 5 years after graduation.

Yup...

Exactly, but Germany is too forward thinking for the UK's liking.

 

[semi-pro waster]

Which is all well and good if SLC were a commercial organisation and bound by commercial law, however, they're a governmental organisation and backed by Statutory Instrument. Which means it IS a penalty charge, not an administration charge. Challenges would have to be by European human rights regulations.

Oh, and it also gives them the right to ask for information.

Killjoy, it won't be all that interesting if it goes to court then.

I thought for some reason that it was an administrative letter rather than a penalty charge - it's perhaps a gesture of a charge though rather than something with a useful chance of enforcement if the person is never in a position to pay the sum let alone any subsequent penalty charges.

 

[dowie]

but the problem is that's not what it looks like as far as the statistics are concerned when it comes time for review you are just another person who took the loans and didn't pay them back.

which may help to decide that mature students shouldn't get them.

the system has been very badly designed - there shouldn't be a cut off after X years and the loan should come out of your estate if unpaid when you die*

currently there are a bunch of retirees taking OU courses as a hobby, this is absolutely fine if they were paying for it, but they're taking out loans they know they'll never have to pay back and their hobby ends up costing the tax payer thousands


*alternatively they'll perhaps have to make different arrangements for mature students - beyond a certain age perhaps they shouldn't be entitled to the normal loans and should instead have access to commercial loans

 

[CraigN]

I just don't understand the standpoint that someone borrows money but then does not want to pay it back.

Because there is a loophole, others don't, they can get out of it etc. Just seems wrong.

My experience of recent graduates is horrific.

In my field the ones i have come across are rubbish, lazy, demand higher wages and have some sense of entitlement. Thus i wont bother interviewing them. All these mickey mouse degrees these days so someone can live the student life for three years and then get out of paying for that as well.

GG

 

[Macro]

Wow - muchos butt hurt in this thread.

I've paid more tax in my working life than you probably ever will".

I'm happy with my stance from a moral standpoint.

Wow - muchos "I don't have to pay back a public loan because I've earned so much more than the rest of you peasants" in this post..

 

[fendi]

I knew someone years ago that went to Uni in the 90's. He said his threshold for paying it back was £21k. Never heard of that before. He worked for the council and was earning the top of his bracket for his position. I think he said it was £20,800 or so.

I am not sure of the T&C's of his repayment but he didn't have an amount deducted monthly, but once a year they would write to him to prove what he earned. They would ask him to provide payslip copies of the last 3 months.

He used to do a lot of overtime, but he would stop it 3 months before the request for information was received. He was earning circa £24k for a couple of years, and well over £21k for the same time or more.

He had no intention of paying it back. Votes labour too.

 

[Tephnos]

I just don't understand the standpoint that someone borrows money but then does not want to pay it back.

Because there is a loophole, others don't, they can get out of it etc. Just seems wrong.

My experience of recent graduates is horrific.

In my field the ones i have come across are rubbish, lazy, demand higher wages and have some sense of entitlement. Thus i wont bother interviewing them. All these mickey mouse degrees these days so someone can live the student life for three years and then get out of paying for that as well.

GG

By mickey mouse do you mean the arts?

 

[Deleted member 66701]

You are of course right, I for one am not shocked to see a hypocritical vocal unionist.

Please point out the hypocrisy.

 

[dowie]

I've paid more tax in my working life than you probably ever will. I've effectively "paid it forward".

I'm happy with my stance from a moral standpoint.

interesting pov - maybe CEOs, top doctors, lawyers, bankers etc.. anyone earning say 200k a year should get a refund on their loan repayments because they've been so successful and pay so much tax anyway?

FYI if you were previously just some salary man at a random company and you're now retired then it is unlikely that you've paid more tax than younger posters will going forwards

 

[Efour]

I just don't understand why you guys are so proud of yourselves for doing so.
If i/When i do something a bit sneaky/weird i don't advertise it and boast.
Its all legal and stuff, GG, well played, forfeit your entire future over a little debt?
But as you demonstrate neither of you have particularly exciting or worthwhile lives, or no ambition so fair play.

You remind me of my uncle that is scared to have an Oyster card or bank account because he doesn't want to be tracked.

Don't take it as offence. I guess you played the game and are happy to come near the bottom, incredibly average.

 

[Deleted member 66701]

interesting pov - maybe CEOs, top doctors, lawyers, bankers etc.. anyone earning say 200k a year should get a refund on their loan repayments because they've been so successful and pay so much tax anyway?

Exactly! I'm glad someone understands.

FYI if you were previously just some salary man at a random company and you're now retired then it is unlikely that you've paid more tax than younger posters will going forwards

Yeah, I suppose SDE at Hewlett Packard is quite a lowly position at a random company. It's not like HP are the worlds 2nd largest IT companay or anything.

 

[Nitefly]

Wow, that was brave.

 

[Deleted member 66701]

Don't take it as offence. I guess you played the game and are happy to come near the bottom, incredibly average.

Well played sir, well played.

 

[manic111]

Surely the obvious solution is to ask the SLC to show you the contract you entered into originally, signed by you. If they can provide it, it will show you what money you owe and what you must disclose. If they can't, they'll have to work pretty hard to make you disclose any information.