Caporegime
- Joined
- 18 Oct 2002
- Posts
- 37,804
- Location
- block 16, cell 12
As a parent you should have stopped her from taking a student loan if she wasn't going to uni
Dilemma
- Thread starter kinetic747
- Start date
You can't take out a student loan and not go to university, they will demand full payment of the loan back.
Permabanned
- Joined
- 28 Nov 2003
- Posts
- 10,695
- Location
- Shropshire
That makes sense, but I've not found a set of Ts and Cs that says that. So far I've only seen stuff saying you have to notify them if you drop out. If you don't keep in touch with them they can change the interest rate but there's still nothing I can see that says they can just demand the full amount back straight away.
Last edited:
- Joined
- 2 Apr 2006
- Posts
- 3,747
To clarify. She was going to uni after getting good A-level results but had a melt down when she was dumped by her boyfriend. Admittedly, I took my eye off the ball regarding the student loan but thought she had it under control, she is an adult after all. I now realize she is still a child in an adults body and needs help. The premium bonds are paying out quite regularly but I'm aware it's not the best place for the money. I'm definitely going to tell my wife and the idea is to pay off the loan (I have always hated any form of debt) and then let her pay the money back. In essence she isn't in debt, the premium bond money is hers but obviously we wanted it to be used for something much better i.e towards a deposit on a house.
I'd be surprised if you couldn't arrange a repayment plan. It's not in their interest to send debt collectors after your daughter.
If it's possible arrange a repayment plan but she must pay it. If you let her off this debt by using the premium bond money she's only learning that if she screws up financially, you'll bail her out.
Don't let her off. She knew it was wrong to spend it. There's a life lesson right there.
I'd also be mortified if one of my daughters screwed up their education over a boy.
If it's possible arrange a repayment plan but she must pay it. If you let her off this debt by using the premium bond money she's only learning that if she screws up financially, you'll bail her out.
Don't let her off. She knew it was wrong to spend it. There's a life lesson right there.
I'd also be mortified if one of my daughters screwed up their education over a boy.
- Joined
- 2 Apr 2006
- Posts
- 3,747
She phoned yesterday and she can pay back in instalments but I'd rather clear it with the premium bond money and then let her pay that back slowly. Yes, I'm taking a risk that the lesson will not be learned but she is a good daughter in every other way.
Associate
- Joined
- 30 Jan 2007
- Posts
- 937
- Location
- West Sussex
Sounds like you are (now) doing the right thing, in terms of telling your wife and making your daughter pay off the debt.
Just make it clear to your daughter that she will be paying you back without fail every month, many young people with access to phone contracts and car finance do not appreciate the concept of debt and usually harsh lessons like these are the only way to get them on the right track
I hope everything works out for you all.
Just make it clear to your daughter that she will be paying you back without fail every month, many young people with access to phone contracts and car finance do not appreciate the concept of debt and usually harsh lessons like these are the only way to get them on the right track
I hope everything works out for you all.
I can believe it, but the standard terms and conditions don't say anything about that. That's why I'm asking. It could be in the contract, rather than the ts and cs I guess.
Soldato
- Joined
- 7 Jul 2011
- Posts
- 4,418
- Location
- Cambridgeshire
You're doing the right thing, the most important thing is to not panic and keep it in context. This is a minor lapse of judgement in the grand scheme of things and £4.5k is nothing to get too worked up about, at the end of the day there seems to be confusion in this thread about the terms of student loans so not surprising that an 18 year who had a meltdown at the time has ballsed up a bit.
I echo the advice of everyone else in here. Tell the wife, sit down and discuss it as a family, support her to manage her finances in order to pay it off but don't bail her out.
I echo the advice of everyone else in here. Tell the wife, sit down and discuss it as a family, support her to manage her finances in order to pay it off but don't bail her out.
The cash in the bank is better than the loan. Don't pay it off if you have alternative uses for the cash (ie a house).
Sounds like she's low income anyway so will possibly never pay it off?
I assume take home wage will be around £750 minimum per month? (calcs worked out rather crudely) and if living at home should be able to be budgeted to pay back into a savings account. When I took home just under £1k a month my parents took £250 for rent leaving me £750 and I funded a bank loan to pay for a motorbike.
You don't get anything in life for free is how I see it and sooner this is learnt the better. A hard way to learn this lesson sadly but sometimes you have to be cruel to be kind.
As others have said definitely tell your wife then you can all sit together and figure out a finance plan for your daughter to get herself out of this mess.
Man of Honour
- Joined
- 12 Jul 2005
- Posts
- 21,679
- Location
- Aberlour, NE Scotland
Tell the wife now because WHEN she does find out (they always do) you will be in serious do do even though you are helping out your daughter.
Associate
- Joined
- 1 Jul 2009
- Posts
- 728
- Location
- Shropshire/Paris
Paying off the debt with premium bonds money is probably the right thing for the debt but not the right thing for her.
She needs to learn so you should make her pay it back. If she has a job and living at home with you it should not be too hard. It can easily be cleared in less than a year with a full time job.
She needs to learn so you should make her pay it back. If she has a job and living at home with you it should not be too hard. It can easily be cleared in less than a year with a full time job.
I would suggest she doesn't understand what her debt is if she has come to you in tears over a student loan which she isn't even earning enough to pay back.
There is no need to take money from the premium bonds to cover this, especially with the sentimental reason of her grandad leaving it to her.
Without being harsh, I don't think you are helping this situation by a) looking to pay off the debt b) by paying off the student loan in these circumstances
Why not sit down together and take a look at the debt? Perhaps calculate her monthly payments based on her earning £20k, £25k, £30k, £40k+ etc so she can understand what it involves?
There is no need to take money from the premium bonds to cover this, especially with the sentimental reason of her grandad leaving it to her.
Without being harsh, I don't think you are helping this situation by a) looking to pay off the debt b) by paying off the student loan in these circumstances
Why not sit down together and take a look at the debt? Perhaps calculate her monthly payments based on her earning £20k, £25k, £30k, £40k+ etc so she can understand what it involves?
Associate
- Joined
- 25 Feb 2007
- Posts
- 2,065
- Location
- Bedfordshire
If they are willing to let her pay it back in instalments, let her do that rather than take the money out of the premium bonds. It will be a formal agreement between her and the loan company which she will have to stick to. Otherwise you run the risk of her paying you back for a couple of months and then you'll get the "Oh i cant afford it this month, can I have a payment break?". This will hopefully teach her about debt and loans while preparing her better for the future because at the end of the day she should really own the problem she created.
If the PB money is going to be used (that was supposed to go towards a house deposit) then I would insist that a HTB ISA in some form is set up and £200 a month is paid into it. Should have the "debt" paid off in 2 years and hopefully with regular saving she will soon learn that expenses will come out regularly and the nicer things in life will need either hard work or saving for.
I burned through a 4k ISA when I had difficulties but that's because I didn't take a loan out at uni, tried to work it off each summer instead. Used the opportunity of living at home to stop "temping" (50hr weeks on good money through an agency) to develop a career.
While she's at home it's the perfect time to take risks, be it more adventurous job hunting or further study, 30hrs a week in retail isn't going to cut it unless she's trying to work her way up the store chain but that level of hours doesn't sound like she's on the radar.
I burned through a 4k ISA when I had difficulties but that's because I didn't take a loan out at uni, tried to work it off each summer instead. Used the opportunity of living at home to stop "temping" (50hr weeks on good money through an agency) to develop a career.
While she's at home it's the perfect time to take risks, be it more adventurous job hunting or further study, 30hrs a week in retail isn't going to cut it unless she's trying to work her way up the store chain but that level of hours doesn't sound like she's on the radar.