UK Student loan repayment
#1
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Thread Starter
Joined: Jan 2010
Location: Perth, WA
Posts: 41
UK Student loan repayment
Quick question about repayment of UK Student Loans...
I left the UK about 5 years ago, to start a job over here, immediately after graduating from a UK university... anyway, in my haste to get things sorted I lost touch with the student loan company and out of the blue, just a couple of days ago, they somehow obtained my email address (I recently used it to place an order for a Birth certificate reprint which I required for Australian citizenship) and sent me a request for information.
A couple of questions:
Should I provide them with my address, employment status, etc...?
Am I under any obligation to make payments towards the outstanding loan? ... and have I therefore been knowingly defaulting on payments for the previous 5 years? Am I about to be hit with a massive fine?
Years ago, I heard plenty of 'old wives tales' regarding British expats who simply moved abroad and left their student load behind them... various people told me stories including; the debt having an expiry date, and that if you don't return to the UK to work, you'll never have to repay it.
I'm about to become an Australian citizen and I have no immediate plans to work in the UK... however, I would like to continue to visit, from time to time, without fear of being chased by police/debt collectors!
Could anyone 'in the know' shed some light?
I left the UK about 5 years ago, to start a job over here, immediately after graduating from a UK university... anyway, in my haste to get things sorted I lost touch with the student loan company and out of the blue, just a couple of days ago, they somehow obtained my email address (I recently used it to place an order for a Birth certificate reprint which I required for Australian citizenship) and sent me a request for information.
A couple of questions:
Should I provide them with my address, employment status, etc...?
Am I under any obligation to make payments towards the outstanding loan? ... and have I therefore been knowingly defaulting on payments for the previous 5 years? Am I about to be hit with a massive fine?
Years ago, I heard plenty of 'old wives tales' regarding British expats who simply moved abroad and left their student load behind them... various people told me stories including; the debt having an expiry date, and that if you don't return to the UK to work, you'll never have to repay it.
I'm about to become an Australian citizen and I have no immediate plans to work in the UK... however, I would like to continue to visit, from time to time, without fear of being chased by police/debt collectors!
Could anyone 'in the know' shed some light?
#2
Home and Happy
Joined: Dec 2002
Location: Keep true friends and puppets close, trust no-one else...
Posts: 93,810
Re: UK Student loan repayment
Quick question about repayment of UK Student Loans...
I left the UK about 5 years ago, to start a job over here, immediately after graduating from a UK university... anyway, in my haste to get things sorted I lost touch with the student loan company and out of the blue, just a couple of days ago, they somehow obtained my email address (I recently used it to place an order for a Birth certificate reprint which I required for Australian citizenship) and sent me a request for information.
A couple of questions:
Should I provide them with my address, employment status, etc...?
Am I under any obligation to make payments towards the outstanding loan? ... and have I therefore been knowingly defaulting on payments for the previous 5 years? Am I about to be hit with a massive fine?
Years ago, I heard plenty of 'old wives tales' regarding British expats who simply moved abroad and left their student load behind them... various people told me stories including; the debt having an expiry date, and that if you don't return to the UK to work, you'll never have to repay it.
I'm about to become an Australian citizen and I have no immediate plans to work in the UK... however, I would like to continue to visit, from time to time, without fear of being chased by police/debt collectors!
Could anyone 'in the know' shed some light?
I left the UK about 5 years ago, to start a job over here, immediately after graduating from a UK university... anyway, in my haste to get things sorted I lost touch with the student loan company and out of the blue, just a couple of days ago, they somehow obtained my email address (I recently used it to place an order for a Birth certificate reprint which I required for Australian citizenship) and sent me a request for information.
A couple of questions:
Should I provide them with my address, employment status, etc...?
Am I under any obligation to make payments towards the outstanding loan? ... and have I therefore been knowingly defaulting on payments for the previous 5 years? Am I about to be hit with a massive fine?
Years ago, I heard plenty of 'old wives tales' regarding British expats who simply moved abroad and left their student load behind them... various people told me stories including; the debt having an expiry date, and that if you don't return to the UK to work, you'll never have to repay it.
I'm about to become an Australian citizen and I have no immediate plans to work in the UK... however, I would like to continue to visit, from time to time, without fear of being chased by police/debt collectors!
Could anyone 'in the know' shed some light?
#3
Re: UK Student loan repayment
They will try and hunt you down, and can cause trouble in overseas countries. If you have the money to get them off your back its probably worth doing so. If not you'll probably have problems whenever you pop onto their radar, and they might even sell the debt to an Australian bailiff.
http://www.telegraph.co.uk/expat/exp...ink-again.html
Student loans are a bad idea....
http://www.telegraph.co.uk/expat/exp...ink-again.html
Student loans are a bad idea....
#4
Re: UK Student loan repayment
They will try and hunt you down, and can cause trouble in overseas countries. If you have the money to get them off your back its probably worth doing so. If not you'll probably have problems whenever you pop onto their radar, and they might even sell the debt to an Australian bailiff.
Heading abroad to escape your debts? Think again - Telegraph
Student loans are a bad idea....
Heading abroad to escape your debts? Think again - Telegraph
Student loans are a bad idea....
#5
Forum Regular
Joined: Feb 2015
Location: Calgary, Canada
Posts: 61
Re: UK Student loan repayment
They will try and hunt you down, and can cause trouble in overseas countries. If you have the money to get them off your back its probably worth doing so. If not you'll probably have problems whenever you pop onto their radar, and they might even sell the debt to an Australian bailiff.
#6
Re: UK Student loan repayment
I think seven years is the time frame for loans to go away. Contact or acknowledging the debt resets the clock. But I think student loans are outside of the traditional system, and so no seven year get out of jail card anyway.
Last edited by kimilseung; Aug 19th 2015 at 3:15 pm.
#7
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Joined: Feb 2015
Location: Calgary, Canada
Posts: 61
Re: UK Student loan repayment
I think it's 6 years for being statute barred for most loans, and even then some of them aren't enforceable abroad so all they can do is threaten you.
Student loans are definately different though, you can easily make payments online to stop them bothering you.
Student loans are definately different though, you can easily make payments online to stop them bothering you.
#8
Re: UK Student loan repayment
Yes, thanks, Cubiscus, six years under the Limitation Act 1980 (for England and Wales).
OP should find out if the student loan can be statute barred under that act, (I am seeing conflicting info) and if so, not reply to the email.
Edit: Here we go, advice from "national debtline" a reply to an email. It is from 2008 so things might have changed.
http://www.consumeractiongroup.co.uk...8-student-loan post#13
and https://www.nationaldebtline.org/EW/.../Page-04.aspx# student loans section
One year to go, I'd say ignore and hope they get no further than an email in tracking you. PAYE will not bother you in Oz.
OP should find out if the student loan can be statute barred under that act, (I am seeing conflicting info) and if so, not reply to the email.
Edit: Here we go, advice from "national debtline" a reply to an email. It is from 2008 so things might have changed.
http://www.consumeractiongroup.co.uk...8-student-loan post#13
and https://www.nationaldebtline.org/EW/.../Page-04.aspx# student loans section
A student loan is a debt under statute, this means that the Limitations Act (LA)1980 does apply. The limitations period on this debt is 6 years and not 12 years. However, as this is a new style student loan, HMRC can deduct repayments directly from your PAYE even if the debt is statute barredicon, which only allows you to defend the matter if it is taken through the courts.
It will be up to you whether you want to contact SLC or wait for them to contact you. If they did find you, they could start to recover the debt through your PAYE. If they were unable to find you, there is a possibility that they may treat this as a bad debt and sell it onto a debt collectionicon agency (DCA). If this was to happen, the DCA would then try to recover the debt from you. If 6 years have passed with no written acknowledgment and no part payment you can then use the statute barred argument. If the DCA were to start court action, this can be used as a defence, however we would recommend that you get legal advice and take into account the additional costs that may be involved if your defence is unsuccessful.
It will be up to you whether you want to contact SLC or wait for them to contact you. If they did find you, they could start to recover the debt through your PAYE. If they were unable to find you, there is a possibility that they may treat this as a bad debt and sell it onto a debt collectionicon agency (DCA). If this was to happen, the DCA would then try to recover the debt from you. If 6 years have passed with no written acknowledgment and no part payment you can then use the statute barred argument. If the DCA were to start court action, this can be used as a defence, however we would recommend that you get legal advice and take into account the additional costs that may be involved if your defence is unsuccessful.
Last edited by kimilseung; Aug 19th 2015 at 3:58 pm.
#9
Lost in the antipodes
Joined: Dec 2012
Posts: 498
Re: UK Student loan repayment
I will probably get flamed, but I think the OP has a moral obligation to do his best to pay back the loan. He incurred the debt to get an education that allowed him to immigrate to Australia as a skilled worker, he has a job, I'm not going to condone not paying back a loan.
#10
Re: UK Student loan repayment
I will probably get flamed, but I think the OP has a moral obligation to do his best to pay back the loan. He incurred the debt to get an education that allowed him to immigrate to Australia as a skilled worker, he has a job, I'm not going to condone not paying back a loan.
#11
Lost in BE Cyberspace
Joined: May 2010
Location: San Diego, California
Posts: 9,654
Re: UK Student loan repayment
I will probably get flamed, but I think the OP has a moral obligation to do his best to pay back the loan. He incurred the debt to get an education that allowed him to immigrate to Australia as a skilled worker, he has a job, I'm not going to condone not paying back a loan.
"I lost touch with the student loan company" - baloney......
Just read that you are a PHd .......... must be earning enough to repay your debts
Last edited by SanDiegogirl; Aug 19th 2015 at 8:59 pm.
#12
Forum Regular
Joined: Feb 2015
Location: Calgary, Canada
Posts: 61
Re: UK Student loan repayment
I will probably get flamed, but I think the OP has a moral obligation to do his best to pay back the loan. He incurred the debt to get an education that allowed him to immigrate to Australia as a skilled worker, he has a job, I'm not going to condone not paying back a loan.
#13
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Thread Starter
Joined: Jan 2010
Location: Perth, WA
Posts: 41
Re: UK Student loan repayment
Thanks for the information all!
Settle down. I signed for the loan when I was 17 y/o - It wasn't something I put much thought into at the time. For me it was just part and parcel of leaving school and moving onto university. I had just assumed that the loan was only deducted/payable from UK PAYE. Off the cuff, over the years I'd encountered other expats, who cited the millstone of the student loan debt as a major reason they elected to work abroad. I obviously put 2 and 2 together and made 5!
When I was finishing my study, and very excitedly looking forward to a new life abroad, I hope you can excuse me for forgetting about the student loan company!! After: handing in my thesis, booking flights, fare-welling friends/family, packing up my life, etc.. it was very far down my list of priorities - so much so that it didn't even register!
Personally, I would like to retain the option to work in the UK in the future, so non-payment isn't really an option for me. As others have mentioned, there is also a moral obligation. However, I do agree with a point above, that it's currently a very unfair system. Thus if it was a debt I could avoid paying, it would sit better with me if I could sort out a program whereby I made equivalent payments towards a charitable organisation, who support children from under-privileged backgrounds that are looking to enroll in higher education.
When I was finishing my study, and very excitedly looking forward to a new life abroad, I hope you can excuse me for forgetting about the student loan company!! After: handing in my thesis, booking flights, fare-welling friends/family, packing up my life, etc.. it was very far down my list of priorities - so much so that it didn't even register!
Personally, I would like to retain the option to work in the UK in the future, so non-payment isn't really an option for me. As others have mentioned, there is also a moral obligation. However, I do agree with a point above, that it's currently a very unfair system. Thus if it was a debt I could avoid paying, it would sit better with me if I could sort out a program whereby I made equivalent payments towards a charitable organisation, who support children from under-privileged backgrounds that are looking to enroll in higher education.
#14
Lost in the antipodes
Joined: Dec 2012
Posts: 498
Re: UK Student loan repayment
Thanks for the information all!
Settle down. I signed for the loan when I was 17 y/o - It wasn't something I put much thought into at the time. For me it was just part and parcel of leaving school and moving onto university. I had just assumed that the loan was only deducted/payable from UK PAYE. Off the cuff, over the years I'd encountered other expats, who cited the millstone of the student loan debt as a major reason they elected to work abroad. I obviously put 2 and 2 together and made 5!
When I was finishing my study, and very excitedly looking forward to a new life abroad, I hope you can excuse me for forgetting about the student loan company!! After: handing in my thesis, booking flights, fare-welling friends/family, packing up my life, etc.. it was very far down my list of priorities - so much so that it didn't even register!
Personally, I would like to retain the option to work in the UK in the future, so non-payment isn't really an option for me. As others have mentioned, there is also a moral obligation. However, I do agree with a point above, that it's currently a very unfair system. Thus if it was a debt I could avoid paying, it would sit better with me if I could sort out a program whereby I made equivalent payments towards a charitable organisation, who support children from under-privileged backgrounds that are looking to enroll in higher education.
Settle down. I signed for the loan when I was 17 y/o - It wasn't something I put much thought into at the time. For me it was just part and parcel of leaving school and moving onto university. I had just assumed that the loan was only deducted/payable from UK PAYE. Off the cuff, over the years I'd encountered other expats, who cited the millstone of the student loan debt as a major reason they elected to work abroad. I obviously put 2 and 2 together and made 5!
When I was finishing my study, and very excitedly looking forward to a new life abroad, I hope you can excuse me for forgetting about the student loan company!! After: handing in my thesis, booking flights, fare-welling friends/family, packing up my life, etc.. it was very far down my list of priorities - so much so that it didn't even register!
Personally, I would like to retain the option to work in the UK in the future, so non-payment isn't really an option for me. As others have mentioned, there is also a moral obligation. However, I do agree with a point above, that it's currently a very unfair system. Thus if it was a debt I could avoid paying, it would sit better with me if I could sort out a program whereby I made equivalent payments towards a charitable organisation, who support children from under-privileged backgrounds that are looking to enroll in higher education.
After the excitement of moving and setting up the office you realise it's been 3 years since you made payments on that car you are driving around Sydney. Do you think car is yours to keep?
To further hammer the point, you get in contact with the car loan company. Instead of making payments, you offer to buy second hand cars to give to women fleeing domestic violence so they can get jobs to start a new life. Is that something the car company should accept?
I'm glad you realise there's a moral obligation and have indicated that non-payment is not an option, but you can't unilaterally alter the terms of the contract once you've accepted them because you don't like them any more.
#15
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Joined: Feb 2015
Location: Calgary, Canada
Posts: 61
Re: UK Student loan repayment
Theoretically in that example the finance company can stop you exporting the car while there's still an outstanding amount on it.
I agree non-payment isn't a moral option but it unfortunately won't stop significant numbers of people from doing it, especially with student loans.
I agree non-payment isn't a moral option but it unfortunately won't stop significant numbers of people from doing it, especially with student loans.