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    Anyone familiar with student loans deferment rules?

    Just got a call from my brother who says he had a letter then a phone-call from a company called Honours Student Loans who have taken over his loan and decided he can no longer defer it.

    He has been deferring it for ten years and is still under the wage threshold. After talking on the phone it seems that as his partner had to take maternity they have started claiming housing benefit until she can get back to work and the loan company have counted this benefit as part of his wage.

    Are they allowed to do this?

    20 Comments

    ignore them until they put something in writing at least-seems very strange that the first contact is a phone call.if they call again,tell them to put the details in writing.

    Original Poster

    It was a letter from the actual student loans company first telling him it had been shifted over to Honours and after a bit of googling they seem a legit debt company who have been given the job of managing these loans now.

    I'm just surprised they claim that housing benefit counts as part of his wage.

    AFAIK all benefits and state financial support packages count towards the debtors annual income (which can't exceed something around £15000 if memory serves). I reckon you'll struggle to argue your case on this one

    Ungreat

    It was a letter from the actual student loans company first telling him … It was a letter from the actual student loans company first telling him it had been shifted over to Honours and after a bit of googling they seem a legit debt company who have been given the job of managing these loans now.I'm just surprised they claim that housing benefit counts as part of his wage.



    the housing benefit is part of his income and if that and his wages total more than 15k he will and should be paying it back

    Original Poster

    micoo

    the housing benefit is part of his income and if that and his wages total … the housing benefit is part of his income and if that and his wages total more than 15k he will and should be paying it back



    Fact or opinion?

    Difficult one .... but you can see that it's only fair he does pay it back eventually ..... there's two of them, they've both been working, and they're now having a child ..... surely it they can afford this ( and I'm assuming here that he's been working most of those 10 years and this child was planned ....maybe not but 10 years is quite a while !) ...... he always knew it would have to be paid back so really should have got his priorities right and sorted this over the last 10 years ..... it is us that are paying for it in the first place after all (_;)

    Ungreat

    Fact or opinion?



    I was told something very similar by our university financial officer last year.

    surely,even if they are allowed to count housing benefit,they can only count HALF as being your brothers share? its a joint benefit is it not?

    Original Poster

    He is 34 now and was doing a drama course over ten years ago, he did pay back the tuition fees but has deferred the student loan as was his right because he is below the wage threshold.

    He has never claimed any other benefits in his life but because his partner had to take maternity he has had to claim housing benefit and with the cost of a baby (didn't plan it) they are living on pennies.

    Ungreat

    Fact or opinion?



    clearly opinion, but im pretty sure its fact too

    Honours Student Loans are in fact genuine, and they love to take over student loans company loans... However, they are horrible, and one of the worst companies I have ever dealt with, they will call every number associated with you and your family and will call everyday until you contact them.

    I, after quite a few years of arguing with them was able to set up a standing order of £10 per month...

    Original Poster

    Also it is a joint claim for housing benefit based on his and her wages.

    If he's happily lived for 10 years without claiming a single benefit then he really should have been making the effort to pay this off over that time.

    Original Poster

    vraptorchick

    If he's happily lived for 10 years without claiming a single benefit then … If he's happily lived for 10 years without claiming a single benefit then he really should have been making the effort to pay this off over that time.



    For most of that he was self employed working on cruise ships so couldn't have guaranteed he would have had enough in the bank to cover any payments.

    Original Poster

    whatsThePoint

    LOL so had plenty in the bank at one time, then when not working thought … LOL so had plenty in the bank at one time, then when not working thought no rush to get another job i'll just live off my savings



    Not really.

    Most people working on cruise ships don't come out with that much it's more to do with getting to travel the world. He always worked in the off season, usually front of house work in a theatre.

    Ungreat

    Not really.Most people working on cruise ships don't come out with that … Not really.Most people working on cruise ships don't come out with that much it's more to do with getting to travel the world. He always worked in the off season, usually front of house work in a theatre.



    I think what most people are trying to say is that, he borrowed the money and should therefore pay it back, if all the money he gets makes it up to the £15k then he can afford to pay it, plus his partner is getting maternity pay on top of that. A child being on the way makes little difference, although no doubt they will be claiming the working tax credits and child tax credits once baby is born, thus adding to their income again. best thing would be to sort out an amount per week/month that the company and he is happy with

    I also agreed £10 a month after speaking to 9 different people and getting passed around the houses!! VERY ANNOYING company to deal with. Cut straight to the chase and ask to speak to a manager on the grounds that you have been messed about in a similar way! When you eventually get through, you can agree the £10 a month, but PLEASE do not commit to any more than you can afford to repay as they are extremely difficult to get them to reduce payments, but very easy to increase. Interest rate is still very low, so paying a low amount simply keeps them off your back without causing you too much distress. Hope this helps. As an afterthought, don't hold back on playing the emotional card of your current situation, but please do wait till you get through to a manager, note down their details and ask them to email you a copy of the details you have agreed to. good luck

    Original Poster

    My only question was does anyone know if housing benefit counts as income when defering a student loan.

    I didn't ask what people 'reckon' as far as him not paying back the loan in the past.

    Ungreat

    My only question was does anyone know if housing benefit counts as income … My only question was does anyone know if housing benefit counts as income when defering a student loan.I didn't ask what people 'reckon' as far as him not paying back the loan in the past.



    lol-youve been here 3 years and didnt expect that reaction? just as well the usual suspects havent come in and suggested having him stoned to death for applying for any benefits at all!

    Original Poster

    barky

    lol-youve been here 3 years and didnt expect that reaction? just as well … lol-youve been here 3 years and didnt expect that reaction? just as well the usual suspects havent come in and suggested having him stoned to death for applying for any benefits at all!



    Don't know why I thought that.

    Maybe the new site tricked me into thinking the people would be different as well. (_;)
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