student grant

[visioN]

Hi all,

 

Got a question regarding student grant.

 

Basically over 6 years ago I enrolled on a course, but within the first week my father passed away so I suspended my studies with the uni. Basically I never went back and got a job. (I've been paying back my student loans every month through my PAYE)

 

I've recently received a letter saying I owe £2000 of over payment of student grant. This is worrying because I don't have that sort of money!

 

The course was going to be paid for me due to low income etc - but I didn't actually take the course - I know I should have notified the SLC but I presumed the Uni would have and was not thinking clearly at the time.

 

Anyone had this sort of issue before?

 

Why has it taken 6+ years to contact me?

Could I contact the Uni and say I never took the course and get them to refund the funds?

 

I am going to contact the SLC soon but just want to see if anyone has been through his before I do!

 

Thanks

[FN-GM]

Do what my friend did. Ignore them and they write off the debt.

[visioN]

I did 3 years at uni, and I am currently paying all that back from my PAYE tax. I signed up for another course and got the grant but dropped out regarding the above reasons. I don't think they will just leave me alone as I am currently paying! Letter mentions debt collection by external agents!

 

Just annoying it has taken 6 years to drop this on me! I'd like to keep my credit rating in a decent position!

[Achandler]

As soon as you start the course, the Uni charges the SLC (fo the first term) if they are paying your fees. If the SLC paid the Uni and then you essientally dropped out, I know it isn't that simple, then you are liable for the fees for that term. The Uni then will have notified the SLC and not claimed fees for the rest of the year.

 

I think because you drop out the grants need to be paid, if you finish then you don't pay them.

 

Either way there is three options, you could ignore them (it does work, event hough it shouldn't), you could contact them and arrange to maybe have it added to your outstanding loan balance (although why do you even have a loan if you never really went?) or contact them and pay it off in full. Personally I would do the 2nd one, on the basis that the first option is more risky, and they can get the money back in the end, they have something like 25 years to claim it.

 

I wouldn't worry about it though, they aren't going to come with bailiffs to your house for it, and I don't think it would be reasonable for them to demand payment in full.

 

My brother got grants for a course twice, and gave up twice, they got added to his loans, but he notified everyone when he gave up so was probably sorted differently.

Edited January 11, 2016 by Achandler

[Patrick]

Just ignore it. I owe Student finance company an obscene amount of money. I don't earn enough to pay it off so i'm not going to. Sounds horrible and makes you feel like a benefit cheat, but if you can't afford it, you can't afford it. Edited January 11, 2016 by Patrick

[Achandler]

Patrick, if he is already paying his current loan off then he must be earnign enough to have to pay it.

 

SLC has changed the terms and conditions multiple times over the years, depending on what the current governments thinking is. So different people have to pay at different levels of incomes, so for your loan you might not earn enoguh but others will earn enough and will have to pay back.

 

Personally I disagree with Student Loans, I think it should be paid for through normal taxation but it isn't, so ignoring the letter about you owing money is hardly the best thing to do.

[bald_pig]

This isn't a normal loan repayment though. This is for the grant. You took the money when you shouldn't have, and now you have to pay it back.

[visioN]

This isn't a normal loan repayment though. This is for the grant. You took the money when you shouldn't have, and now you have to pay it back.

@bald_pig

The SLC sent the funds to my Uni - so I didn't really taken money I shouldn't have? My circumstances changed a week into the course, and I informed the uni.

[bald_pig]

@bald_pig

The SLC sent the funds to my Uni - so I didn't really taken money I shouldn't have? My circumstances changed a week into the course, and I informed the uni.

 

Grants don't go to the uni, they go to you. The only grants that SLC give are to to support low income households in lieu of a portion of your maintenance loan. The only money that goes to the university will be a loan, and that will have been factored in to your repayments already.

[rich_tech]

get in touch with your local citizens advice bureau about it, they can advise you better on how to deal with it and will know the legalities of what is asked of you.

 

If you owe the money, then they probably want to get you on board with a payment plan to return the cash to them from the letter, they will only go down the debt collection route if you ignore the letter and do nothing I would wager.

 

Student loans are a little depressing (probably more so now with the massive fees they can levy, it was £3k a year when I did mine), I pay about £20 a month off my student debt and I still owe around £18k here (3 years on a degree, with 1 year that I dropped out when I was 19 on a HND)

[visioN]

Thanks for the comments from all. I think I'll contact and set up a payment plan... just annoying after 6 years of nothing and now POW you owe 2grand!! (whilst paying my thousands of debt off via PAYE tax)

[notalot]

Thanks for the comments from all. I think I'll contact and set up a payment plan... just annoying after 6 years of nothing and now POW you owe 2grand!! (whilst paying my thousands of debt off via PAYE tax)

 

It would be a good idea to speak with citizens advice bureau before setting up a payment plan once you start paying you have acknowledged that you owe the money and it will make life very hard if after the chat you find out you don't.

[michael2k6]

Another vote for citizens advice. I am no financial advisor nor is my company, so take this with a pinch of salt but I believe after 6 years of last acknowledgement a debt becomes statute barred which means it's written off and is tough. So check that 6 years. The last acknowledgement would be when you notified the uni of leaving the course, at a guess. If it's over 6 years, mention that to Citizens advice too in case it helps. If it's just under 6 years, that might be why it's happened now (though I agree, it should happen sooner not come out of the blue).

[visioN]

Thanks @michael2k6 done some Googling...

 

Student loans

There are ‘old style’ and ‘new style’ student loans. Old-style student loans are for students who started their university course before September 1998. New-style student loans apply to students starting their course from September 1998 onwards.

 

The Limitation Act says that the limitation period for student loans is six years.

 

The cause of action (when the limitation period starts running) for old–style student loans, is usually when the loan became due for repayment in the April following the conclusion of your course. However, if you asked for it to be deferred within the six year limitation period, this would have restarted the limitation period.

 

For new-style student loans, the cause of action is likely to be when your earnings reach the set level at which deductions from your wages can begin. Because the Student Loan Company can take money directly from your wages, it might be more difficult to use the Limitation Act. Contact us for advice.

 

https://www.nationaldebtline.org/EW/factsheets/Pages/25%20EW%20Time%20limits%20for%20recovering%20debts/Page-04.aspx#

[visioN]

Spoke to someone at the national debt helpline..

 

Received: Grants are usually not owed back. If the course was not completed they can ask for the money back. The Student Loans company could enforce and ask for the debt back if it less than 6 years from when it became due.

Received: The Limitation Act 1980 sets out the rules on how long a creditor (who you owe money to) has to take certain action against you to recover a debt. If you have not acknowledged in writing or made payments to a debt for a period of 6 years, and the creditor has not commenced legal against you; the debt may be statute barred under the Limitations Act.

Received: The issue is when the debt became due and payable.

 

So basically they have six years to reclaim the monies or start court proceedings (or I acknowledge the debt in writing), from the date the monies became repayable.

 

I'm at 5 years and 6 months I think...