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student loans
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Hi there,
I have a student loan left over from my uni days. I graduated in 1998.
I have always deferred my payments (except when I was teaching, even though i was below the threshold for repaying it) except last year (or the year before can't remember) the student loans company was take over by honours student loans. This is when my deferrement started getting fouled up. It tooke me ages to actually get the defferement renewed through them losing and not processing it efficiently. I was then in arrears from not being deferred which I had to start paying which i am still paying. I have now sent back my deferement from 4 times this year and it is still not processed.
Today i get a call from honours saying that I am falling behind and I need to up my payments from 80 per month to 170 per month. I explained that I am not working and I can't afford this repayment. I should be deferred and he told me that it was "tough" and that my right to defer had been terminated as i had fallen behind on the account. I again tried to explain that I began the deferrement process a year ago and despite numerous form filling and letters from third parties the papers have not been processed.
does anyone know anything about this "termination of account" and losing the right to defer. I am in the dark and frankly am very anxious about the situation and don't really know what to do.
thanks in advance
mimi
I have a student loan left over from my uni days. I graduated in 1998.
I have always deferred my payments (except when I was teaching, even though i was below the threshold for repaying it) except last year (or the year before can't remember) the student loans company was take over by honours student loans. This is when my deferrement started getting fouled up. It tooke me ages to actually get the defferement renewed through them losing and not processing it efficiently. I was then in arrears from not being deferred which I had to start paying which i am still paying. I have now sent back my deferement from 4 times this year and it is still not processed.
Today i get a call from honours saying that I am falling behind and I need to up my payments from 80 per month to 170 per month. I explained that I am not working and I can't afford this repayment. I should be deferred and he told me that it was "tough" and that my right to defer had been terminated as i had fallen behind on the account. I again tried to explain that I began the deferrement process a year ago and despite numerous form filling and letters from third parties the papers have not been processed.
does anyone know anything about this "termination of account" and losing the right to defer. I am in the dark and frankly am very anxious about the situation and don't really know what to do.
thanks in advance
mimi
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Termination of account simply means the company has / is going to cease the financial agreement that you signed for and will / may require you to repay any existing credit / outstanding payments within X number of days. However you also mentioned that this is not your fault - because the company did not process the deferment request in time - Write to the company explaining the situation - provide them with copies of all letters sent and make sure you mention that you are engaging the first level of internal complaints proceedures with the company - Normally after the second level (if you are dissatisfied with your level one resolution) you may have to escalate to level 3 / head office. If they give you no joy either - THEN and only then must you contact the ombudsman service if they are regulated by the FSA - which if I am not mistaken they are.
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