The Student Room Group

Dropping out before next loan payment

If I drop out before my next payment gets here (28th April) inform student finance not to pay my april loan and quit uni officially, will I have to pay anything upfront? I've used all my Jan loan on rent.

Thanks
Original post by idontcareeeee
If I drop out before my next payment gets here (28th April) inform student finance not to pay my april loan and quit uni officially, will I have to pay anything upfront? I've used all my Jan loan on rent.

Thanks


Talk to SFE, but you nee to have formally completed your withdrawal from the uni so they lose the right to accept the fees. the amounts you owe will then go onto the normal only repayable until earning in excess of £21,000 basis.
Original post by 999tigger
Talk to SFE, but you nee to have formally completed your withdrawal from the uni so they lose the right to accept the fees. the amounts you owe will then go onto the normal only repayable until earning in excess of £21,000 basis.


Thank you, so none of Jan OR april maintenance loan (that I will cancel before I receive.) will have to be repaid in full and aprils fees will just be added to overall loan? heard some horror stories and I'll have to use my savings to pay my private landlord full rent if I do drop out.
Original post by idontcareeeee
Thank you, so none of Jan OR april maintenance loan (that I will cancel before I receive.) will have to be repaid in full and aprils fees will just be added to overall loan? heard some horror stories and I'll have to use my savings to pay my private landlord full rent if I do drop out.


Think that is two different questions.

1. Re what you owe SFE, then all the debt up until you officially leave goes on he normal debt repayment terms. Any money you received after you left will count as an overpayment and in most cases they expect that back although you can negotiate terms and there is a little leeway. They want that overpyament back sooner rather than later.

My understanding is if you canel before the fees are due, then they are not added to your loan because you never incurred the cost./ the money was never paid out.

2. The second issue is about your LL, which you have only just mentioned. You will be liable for your rent until the end of your contract. they normally accept you finding a replacement. If you are leaving then youd better get busy to see if you can find someone. imo its worth offering an incentive to make it more attractive.
Original post by 999tigger
Think that is two different questions.

1. Re what you owe SFE, then all the debt up until you officially leave goes on he normal debt repayment terms. Any money you received after you left will count as an overpayment and in most cases they expect that back although you can negotiate terms and there is a little leeway. They want that overpyament back sooner rather than later.

My understanding is if you canel before the fees are due, then they are not added to your loan because you never incurred the cost./ the money was never paid out.

2. The second issue is about your LL, which you have only just mentioned. You will be liable for your rent until the end of your contract. they normally accept you finding a replacement. If you are leaving then youd better get busy to see if you can find someone. imo its worth offering an incentive to make it more attractive.


Sorry for the confusion and thanks for your help! If I do cancel before April and receive money in error I don't intend to spend it at all, so I'll just repay if there is ever a mistake in them paying me after I leave. I'm glad I won't have to pay Jan loan upfront though, thank you.
Original post by idontcareeeee
Sorry for the confusion and thanks for your help! If I do cancel before April and receive money in error I don't intend to spend it at all, so I'll just repay if there is ever a mistake in them paying me after I leave. I'm glad I won't have to pay Jan loan upfront though, thank you.


Thats my understanding.

Every uni has an official leaving procedure so best identify it (website) and follow that. You must complete it so SFE dont pay and if they drag their feet warn SFE not to pay.

Do have regard to your ability to cancel your accommodation and obligation to pay rent.

If this is your first year then dont forget SFE allow you a gift year, so in future as long as there was no other student finance used, then they will still fund a full course for you, if you ever decide to return.

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