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    Just got a letter from the Student Loans Company. Here's the situation. I withdrew from my Uni right at the start without even attending a lecture, but recieved the first third of my maintenance loan. As I needed time to search around for a full time job, I used the loan to live on for a while, untill I did.

    Obviously I should have repaid the loan then when I did, but it was helpful having extra funds as a fall back, and I had used a sufficent amount of it too. So here I am in February and I get a letter saying:

    "As you have already been paid £1176.12, you must therefore now return £1176.12. This amount is now due".

    "Interest on the outstanding balance of your account will continue to accrue until it has been repaid in full."

    What are my options here. I don't have the whole money to pay back currently. And doing so on my next pay packet would cripple me financially.

    I thought Student Loans were intrerest free? That's the sentence that has me worried. Or does this mean they will now start taking money from my earnings?

    I'm planning to go to Uni for definate this coming September. I had planned to just add this £1176.12 on top of the student debt that I would accrue over the next three years, then start repaying once I have a graduate job, like everybody else. Is this still feasable?

    Sorry to rant on, but the letter has somewhat confused and worried me. Where do I stand here?

    Many thanks and please do reply.
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    (Original post by Poebit)
    Just got a letter from the Student Loans Company. Here's the situation. I withdrew from my Uni right at the start without even attending a lecture, but recieved the first third of my maintenance loan. As I needed time to search around for a full time job, I used the loan to live on for a while, untill I did.

    Obviously I should have repaid the loan then when I did, but it was helpful having extra funds as a fall back, and I had used a sufficent amount of it too. So here I am in February and I get a letter saying:

    "As you have already been paid £1176.12, you must therefore now return £1176.12. This amount is now due".

    "Interest on the outstanding balance of your account will continue to accrue until it has been repaid in full."

    What are my options here. I don't have the whole money to pay back currently. And doing so on my next pay packet would cripple me financially.

    I thought Student Loans were intrerest free? That's the sentence that has me worried. Or does this mean they will now start taking money from my earnings?

    I'm planning to go to Uni for definate this coming September. I had planned to just add this £1176.12 on top of the student debt that I would accrue over the next three years, then start repaying once I have a graduate job, like everybody else. Is this still feasable?

    Sorry to rant on, but the letter has somewhat confused and worried me. Where do I stand here?

    Many thanks and please do reply.
    you took money that wasnt yours, and used it for something that it was never intended for. thats pretty bad considering how many actual students didnt get their loans on time this year. shame on ye
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    Student loans have never been interest free! They accrue interest at the RPI and have been over 4% in the last 3 years. It is a financial fluke that they are 0% this year until September.
    see
    Current & Past Post-1998 Student Loan Interest Rates
    Date Rate
    CURRENT (1 Sept 09 to 31 Aug 10) 0%
    6 Mar 09 to 31 Aug 09 1.5%
    6 Feb 09 to 5 Mar 09 2.0%
    9 Jan 09 to 5 Feb 09 2.5%
    5 Dec 08 to 8 Jan 09 3.0%
    1 Sep 08 to 4 Dec 08 3.8%
    1 Sept 07 to 31 Aug 08 4.8%
    1 Sep 06 to 31 Aug 07 2.4%
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    Right so what are my options? Call up the helpline and discuss a plan? Cos there's no way I can repay it right now. And what can happen to me If I can't repay it?
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    (Original post by WEB)
    you took money that wasnt yours, and used it for something that it was never intended for. thats pretty bad considering how many actual students didnt get their loans on time this year. shame on ye
    You've no idea of the circumstances surrounding my decision so how dare you pass judgement. I look for neither sympathy or derision, just advice on what I can do now. Cheers.
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    You should phone up and speak about a repayment plan for the money you owe. It might mean that you won't receive funding for your next academic year, unless you manage to pay your debts off, but this is something to discuss.
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    Can we keep this sensible and on track, please?
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    (Original post by Baz1990)
    you should pay it back straight away, you are not a student, what you have done is equivalent to fraud.

    student finance may not support you if you want to go to uni this year.
    :lol: :lol: :lol:
    looks like you will be working at mcdonalds then.:toofunny: :toofunny: :toofunny:

    Hahaha. Brilliant. Sucks for you I already have a well paying job, way up the totem pole from McDonalds.

    It's not fraud as it wasn't my intention to do this. I ended up using some of the maintenance grant as I didn't have a full time job for a while so the funds came in useful.

    So, anyway I'm going to try and negotiate it to where I add this debt on top of future debt that will be gained from attending University for the next three years, but then you suggest they might not pay me another loan if I don't pay this back before? Hmm, I guess I will have to see what they say.
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    (Original post by cpj1987)
    Can we keep this sensible and on track, please?
    censorship much?
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    Whilst you can probably negotiate the loan repayment I think they'll want the grant back now.
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    You can phone up and sort out a payment plan, i think you can repay at anything from £10 a month. If that was your first year of uni having a student loan then you'll get funding for the duration of another course
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    (Original post by hypocriticaljap)
    Whilst you can probably negotiate the loan repayment I think they'll want the grant back now.
    I only recieved a very small grant this month, which I'm assuming was adjusted because I'd dropped out( I informed them I had back in October). So as that's a grant not sure why I would have to pay that back? Anyway, once I've got payed and upped my overdraft I'm sure I can pay the loan off easily. Will see what my options are when I speak to them though.
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    You have to pay the grant back because you didn't go to university? The purpose of what the grant is for?
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    (Original post by MulderMan)
    You have to pay the grant back because you didn't go to university? The purpose of what the grant is for?
    No, the purpose of the grant is to help you if you DO go to university. You've no need for it if you didn't.
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    (Original post by cpj1987)
    No, the purpose of the grant is to help you if you DO go to university. You've no need for it if you didn't.
    Which is what I said, no?
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    (Original post by MulderMan)
    Which is what I said, no?
    Sorry, the question marks made me assume you were questioning it.
 
 
 
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