Every year i get a letter asking me for proof of income for deferring my loan repayment. They have my bank account details. If i close my bank account, open another and not respond to this letter, is there nothing thay can do to get at my money other than keep sending me letters?
2007-03-08
22:03:12
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8 answers
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asked by
Anonymous
in
Education & Reference
➔ Financial Aid
Just to add i'm not working at present and claiming JSA
2007-03-08
22:33:52 ·
update #1
There are two types of repayment in use at the moment - loans taken out prior to 1999 are repayed 'actively' - you have to make a monthly payment based on your income. Post 1999, student loan repayment became a debt repayable through your NI number, deducted from your payslip at a rate of 9% of all you earn over 15k per year.
The 'old' loan, however, is repayable at a much higher threshold (my last letter said that I could defer if I earned less that 1700 per month), so you have to ask yourself: if you're earning over 1700 per month, do you really need to try and avoid repaying your loan?!?!?!
The SLC will charge you 20 pounds each time you miss a payment and they send you a letter, plus they employ a debt recovery firm to seize assets on persistent offenders, which can add hundreds to your bill. If I were you, I would send them evidence of your pay and just lump it - it is your debt after all!!!
2007-03-08 22:10:55
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answer #1
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answered by PETER G 3
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With the recent law changes, you can never NOT pay student loans. Even if you declare bankruptcy, you still have to pay them. They have your SSN, so they will track you down. Eventually they may even find out where you work and start having your wages garnished.
Unless you earn cash jobs the rest of your life, don't plan on using your credit for anything (car loan, a house, heck, even a lot of apartments & cable companies require a credit check now), and don't mind having someone trying to track you down all the time, go ahead and keep doing what you are doing.
The student loans are also Federally backed, so keep that in mind too!
2007-03-08 22:13:29
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answer #2
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answered by jtr8178 2
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They will still be able to find you, if you ignore the letters they'll just pass your details onto a debt collection agency who will then start charging you extra and if you still don't pay then they'll start sending bailiffs round. Plus if you close your bank account then you credit rating will lower because the longer you're with a bank the better your rating is. It doesn't cost a lot a month, you might as well just start paying it if you're earning more than the deferral limit.
2007-03-08 22:09:31
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answer #3
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answered by liz 2
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Absolutely. They have your social security number as well as the information about the institution that originally awarded you the loan. Don't be surprised if your loan goes into default. And, when it does, don't be surprised if
(a) your wages are garnished
(b) your tax refunds are withheld
(c) your credit score is destroyed
(d) your social security benefits are withheld
(e) you become ineligible for student aid and other types of credit
(f) you become responsible for legal fees associated with the collection of your loan(s)
(g) you are sued
Defaulting on a student loan is a serious matter that affects more than just you. It also takes a toll on taxpayers as well as current/future students at the school you attended.
2007-03-09 04:34:11
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answer #4
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answered by FinAidGrrl 5
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you have 18months of forbearance, it is it. each so often they assist you to do graduated money (much less interior the initiating and extra on the top), or while you're making under a undeniable volume then you could qualify for deferment in step with financial hassle (yet you have lot make below $1000 a month---examine along with your lender). while you're enrolled in a minimum of 6 instruments (area time) you do no longer could pay it lower back. you need to connect 2 on line training (particular they count variety) at an authorized college or college.
2016-11-23 16:59:08
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answer #5
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answered by Anonymous
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If they can't get in touch with you, it will go to a collection agency. That will destroy your credit and prevent you from getting any further in life (home, cars). Eventually the IRS will garnish your returns. Student loans are considered good credit.
2007-03-09 01:15:42
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answer #6
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answered by Anonymous
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don't even think about doing this.. seriously.. you hgave them your SSN when you applied for a loan; they can seize income tax refunds, and destroy your credit rating.. look for a lower rate by consolidating.. or just face the fact it's time to start re-paying the loan once you get a job. and then go get the job.
2007-03-08 23:37:04
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answer #7
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answered by dedeshry1 2
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You will have provided your National Insurance number when you applied, so I think they will always know where you are.
You can run but you can't hide!!
2007-03-08 22:20:48
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answer #8
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answered by chip2001 7
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