How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jo C. Your Own Question
Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70197
Experience:  Over 5 years in practice
12826847
Type Your Law Question Here...
Jo C. is online now

I went to university in 2000 and borrowed £13,804 whilst at

Resolved Question:

I went to university in 2000 and borrowed £13,804 whilst at University. I was told that when I started earning over the threshold for repayments money would automatically be taken from my salary. I didn't check whether it was or wasn't I assumed it would be as I earned well above the threshold. I received a letter in 2010 to say my loan had gone into repayment so they hadn't taken any money from me at all between 2005-2010 when I had been eligible. This has left me still £10,000 in debt after paying £7,573 to date (I only have accurate figures to the end of the last tax year currently) when everyone else in my year has just finished paying theirs off. I have spoken to the student loans company who say that it was my previous employers that didn't notify them about my salary however it says very clearly on their website that the HMRC will notify them and you don't have to do any thing. Is there anything I can do about this?
Thanks
Rachael
Submitted: 2 years ago.
Category: Law
Expert:  Jo C. replied 2 years ago.
Hi.
Thank you for your question. My name is ***** ***** I will try to help with this.
How have you come to be £10k in debt after paying £7573.?
Customer: replied 2 years ago.

Because they put interest on and I didn't pay anything back for 5 years so I'm assuming a lot of that is interest

Expert:  Jo C. replied 2 years ago.
The interest on student loans is usually pretty low. Obviously interest can always be a nasty shock but it isn't going to be this amount.
In terms of action you can take, ultimately they are at fault but not in a way that means they cannot claim payment. Come what may, they have made a mistake but you didn't bring it to their attention either which might be unrealistic but it is what the law requires.
The only challenge you may have is to argue that they are time barred under the Limitation Act 1980 to pursue this. That would depend on whether you have acknowledged this debt within 6 years though. I know you haven't paid it but there are other ways of acknowledging debt.
They may take a lesser sum in full and final settlement if you can afford a lump sum. The risk is that they will add a default to your credit account though which is generally unattractive.
Sorry if that is bad news.
Can I clarify anything for you?
Jo
Customer: replied 2 years ago.

What does time barred mean?

Expert:  Jo C. replied 2 years ago.
Out of time to pursue this.
They have six years from the date of last acknowledgement.
Customer: replied 2 years ago.

I started to repay in 2010 but it should've been 2005

Expert:  Jo C. replied 2 years ago.
That would amount to acknowledgement then.
Unfortunately they are in time.
Customer: replied 2 years ago.

So I have 5 years interest to pay on something that they should have taken off automatically even though it still says that on their website?

Expert:  Jo C. replied 2 years ago.
If you didn't pay it then you are liable for the interest unless they will agree to deduct it.
They didn't deduct it but ultimately a court would expect you to have checked however unrealistic that may be.
Customer: replied 2 years ago.

do you think they engineer this knowing that they have up to 6 years to collate extra interest before they have to contact people? My boyfriend has just come home from work and told me he had to contact them after two years of not paying.

Expert:  Jo C. replied 2 years ago.
No.
I think they are just inefficient sometimes.
Probably you just dropped off their records.
Customer: replied 2 years ago.

It's not very fair though is it?

So you don't think I have a case against them?

If I did how could I pursue it further?

Expert:  Jo C. replied 2 years ago.
Borrowing money is not really about fairness. It is almost always a bad deal.
On these facts, there is no challenge.
If you did have a challenge then just refuse to pay and invite them to sue but that wouldn't be a good idea here.
Customer: replied 2 years ago.

It's unfortunately a must when studying I'm sure you must have had student loans as law degrees take a while. I'm a teacher and it is something that really upsets me when I see how much debt my sixth formers are being asked to take on now.

Thanks for your replies

Expert:  Jo C. replied 2 years ago.
Yes, some loans are essential.
As loans go student loans are not the worst but there is interest and compound interest can have a nasty sting to it.
Jo C. and other Law Specialists are ready to help you

Related Law Questions