the debts collectors (Student Loans Co.)

Member Name: pontecaille

Product:	Student Loans Co.
Date:	15/02/02 (1307 review reads)
Rating:

Advantages: see op

Disadvantages: see op

*****When I first heard of the Student Loan Company I thought great: you get the money straight away with no fuss, low interest rate paid in monthly, don’t have to pay back if your earnings do not exceed something like £15000 a year. This is certainly much better than a bank loan. But when my boyfriend started to have troubles with the service I suddenly changed my mind about he aspect of getting a loan with them.*****

First of all I will give a quick brief of this place:
Basically it is a service owned by the UK Government and any student can apply for it. You just have to fill in an application form, give few details and then they will tell you if you are eligible or not. The company operates within a policy set by the Government and it is a Student Support Scheme.
The amount you have to pay back will depend on the amount borrowed plus the interest charged. Interest is linked to the rate of inflation and is adjusted each year. As far as I am concerned the rate should not exceed 3% or something like that. If you are eligible to defer repayment of loans, the company sends you a deferment letter each year where you state your current salary. You will then know if you have to gradually pay them back or exempt for another year.

This is where the fun starts…I mean the stress…

>>>>>>>>>>My boyfriend got deferred every year until once he never received the paper to fill in. Since then he only had hassles from the loan Company asking him to start paying the arrears they say he is due. This amount corresponds to the deferment that he never got in the first place. I have known him for 3 years and you can be sure than every single month he received at least 2 letters reminding him his debts and threatening him of further legal action if payments don’t start soon. They might be just words but the pressure grows quickly when you get a noticeable amount of letters like that. And to top up the arrears they cha
rge £12 per account for each letter they send. It is roughly a total of £900 letters charges added to the account. A real outrage.

>>>>>>>>>>He obviously got in touch several times with the company explaining his situation but they simply replied they couldn’t do anything and that they will pass the case to solicitors if he doesn’t start paying back, which they did. He felt he had no choice than to arrange a suitable direct debit transfer. But he could’ t afford much and this was even not enough to cover the monthly interest. So I advised him to stop the standing order and seek professional advice. But unluckily enough none of the bodies (it could be a good topic for a next opinion actually) we approached were involved or committed enough to help him out but worsen his case.

>>>>>>>>>>I can tell you my partner was frustrated, stressed, totally fed up and disgusted with the whole thing. And signing on after didn’t make things easier. The hassle was still there so he decided to contact another body to deal with the problem. But it didn’ t do any good again. The company first acknowledged the fact of the loss of his job so he got deferred but then to our total surprise and wrath he received 2 giro books with a compliment slip asking for repayment. That was it! Stuart (my partner) took the phone and started barking at the customer service person at the other end. Someone finally acknowledged him and comforted him by saying the letters he has been charged for will be taken off and that they are treating his demand as an official complaint. But he still had to agree to pay back the arrears left on his accounts if he wants to stop this whole farce. The student Loan Company was not very fair on the amount they set up as we just couldn’t afford it but the arrears had to be cleared within 12 months and the £80 monthly figure was the only one to do so.
We have now only few months to go and if we get the form we should b
e liable for deferment the next academic year.

>>>>>>>>>>But what a pain. During this hassle I personally think the Student Loan had not provided a very good service. Their advisors should be called debts collectors and the customer service department should get a proper training in financial matters. None of the person Stuart talked to was able to find his file and his request had to be started from scratch. None of them was fully knowledgeable to deal with such matter and only occasioned unnecessary worries and annoyance.
>>>>>>>>>>They should also get it right on the opening hours of the place. We were told to phone at a specific date and time but surprise surprise, an answer machine advised us to reach the Department during office hours. What a joke.


*****For me it is a very bad service and a booby-trap and I am not at all impressed but I know many students who got away with the money they borrowed and who never encountered problems with them. Stuart must have been a lucky dip.
Howver the thought of getting a low interest loan sounds still attractive to me but always bare in mind for eventual troubles.
Students need finances quick and the Company certainly offer this possibility but it is not pain free...*****

Summary: