spudmonkey32 Posted September 27, 2015 Share Posted September 27, 2015 Hi, My girlfriend and I live in Aus as PR, but she has an outstanding student loan from the UK from her studies (post 1998). They are sending threatening letters to her brothers address. He has responded to them several times stating that she does not live there, but still they persist. Can anyone shed any light on how far they would likely go in their pursuit of outstanding loans? Would her brother end up with a bad credit rating on his address? could the debt collection agency knock on his door? and what about in Aus, could they do anything to track her down here and call in the debt? And finally when she visits the UK could there be any immigration issues or court proceedings upon arrival? It is extremely unlikely that we would live and work in the UK - it would be just visiting our families. If someone has been in a similar situation I would appreciate your thoughts, and what action you took, as this situation is causing us a lot of sleepless nights. Thanks Link to comment Share on other sites More sharing options...
AJ Posted September 27, 2015 Share Posted September 27, 2015 Hi, If someone has been in a similar situation I would appreciate your thoughts, and what action you took, as this situation is causing us a lot of sleepless nights. Thanks Maybe try paying it back then? It was a loan! Link to comment Share on other sites More sharing options...
spudmonkey32 Posted September 28, 2015 Author Share Posted September 28, 2015 I have said that to her. But please i'm looking for advice, not for her to be judged. Link to comment Share on other sites More sharing options...
Peach Posted September 28, 2015 Share Posted September 28, 2015 I have said that to her. But please i'm looking for advice, not for her to be judged. Paying it back would seem to be the line of least resistance. What does Confuscious say? "He who lives a complicated life, does so because he has made life complicated". I would guess the debt collector can huff and puff and keep hassling the hell out of your partners family but beyond that....It could be costly if you do decide to ever move back to the UK: http://www.telegraph.co.uk/finance/personalfinance/expat-money/9287346/Student-loan-could-land-you-in-court-if-you-move-overseas.html Link to comment Share on other sites More sharing options...
spudmonkey32 Posted September 28, 2015 Author Share Posted September 28, 2015 Thanks Peach. I would prefer to not have to worry so am encouraging her to pay it off. On that note does anyone know when your account is in arrears does that mean that you have to clear off that amount in one go to 'catch up' then begin the normal payments? Link to comment Share on other sites More sharing options...
Vanduex Posted September 28, 2015 Share Posted September 28, 2015 I fully understand being judged isn't what you want. But she borrowed it and spent it. It is hard to advise you on how to not fulfil a required repayment. You have a couple of choices: roll the the dice and hope the brother doesn't get done. I can't realistically see what they can do unless they go as far as court. I have no idea if this would happen. I don't think they can find you if you don't return to work in the uk. But if you do ever go back and you never know what life will throw at you, it could be an issue then. Or pay it back I contacted them and they gave me a year off. Now I transfer money back each month to clear it. Needs to be done. It's a pain. It really is. But I had a great time in uni and I have a great job as a result of it. I will clear the debt. My my one piece of advice is consider your short term win over your longer term limitation. Tried not to judge. Link to comment Share on other sites More sharing options...
tina0101 Posted September 28, 2015 Share Posted September 28, 2015 The contract is with her, not the brother, so doubt they will be able to do anything to him. if you ever return home, then she will have problems. I know you have PR, but who knows what may happen in the future. Its a roll of the dice. We are paying it back from Australia - just couldn't take the risk that one day we may have to return (even though we have not intention of!). Link to comment Share on other sites More sharing options...
Keith and Linda Posted September 28, 2015 Share Posted September 28, 2015 I believe the bad credit record will be under both a name and an address, the person living at that address could well have problems in trying to clear any links to his/her name. The debt collector may well come knocking but cannot remove anything which is not the property of the person with the debt. Regarding paying off the debt then contact the lender and come up with some form of agreeable payment plan. Link to comment Share on other sites More sharing options...
Parley Posted September 28, 2015 Share Posted September 28, 2015 Thanks Peach. I would prefer to not have to worry so am encouraging her to pay it off. On that note does anyone know when your account is in arrears does that mean that you have to clear off that amount in one go to 'catch up' then begin the normal payments? Why don't you help her pay it off seeing as you love her and stuff. Link to comment Share on other sites More sharing options...
Guest Posted September 28, 2015 Share Posted September 28, 2015 Agree with the others. She needs to contact them to discuss (perhaps a phone call during the cross over office hours between UK and Aus) and sort out a repayment scheme. Its better she pay a minimum amount than nothing at all as they should then at least be off the case re trying to collect the debt. So long as she is paying it off, even if its a few years, it has to be better in the long term than avoiding or hiding from it. Unlike the Aus student loan here which can be deferred should a person live overseas (but also people can continue to repay), the UK IIRC has in the small print that living overseas is not a get out or defer/delay repayment or not repay it at all. She really needs to stand up and deal with this properly rather than ignore it or run away from it or let someone else take the crap for it in the form of letters and people knocking on the door. Link to comment Share on other sites More sharing options...
spudmonkey32 Posted September 28, 2015 Author Share Posted September 28, 2015 Thanks for the comments, much appreciated Link to comment Share on other sites More sharing options...
Que Sera Sera Posted September 28, 2015 Share Posted September 28, 2015 From the many posts on here over the years about debt we've learnt that personal debt cannot be chased from UK to Australia BUT debts to Government and Student loans can. So from that I assume she's going to have to find a way to pay it back. Assuming she is earning over the minimum amount where repayments kick in of course. Link to comment Share on other sites More sharing options...
Guest Posted September 28, 2015 Share Posted September 28, 2015 From the many posts on here over the years about debt we've learnt that personal debt cannot be chased from UK to Australia BUT debts to Government and Student loans can. So from that I assume she's going to have to find a way to pay it back. Assuming she is earning over the minimum amount where repayments kick in of course. I don't know what the minimum threshold is in the UK. But yes, this may well apply. Link to comment Share on other sites More sharing options...
Johndoe Posted September 28, 2015 Share Posted September 28, 2015 ^^^ As above. Unless your income is above the current repayment level, (17K GBP taxable income) it doesn't yet have to be paid back, as I understand it and then at 9% of everything over that 17K. Interest is accrued on the laon: Either... the Bank of England base rate, plus 1% Or... the rate of inflation. This is fixed for a year on 1 September based on the rate of inflation (RPI measure) the previous March, though the actual rate is only officially confirmed each August. If there is a fear of "getting caught" either on a likely return to the Uk later, then it would be far easier to commence repayments now (if eligible for repayment) rather than accrue interest and cop bigger repayments later. Non-payment does not impact on credit files although you may be asked if you have outstanding loans if applying for credit The UK Gov't announced in 2013 that it would be selling off the rermaining 40billion of student loan debt so all the above may change Link to comment Share on other sites More sharing options...
spudmonkey32 Posted September 28, 2015 Author Share Posted September 28, 2015 She would be eligible for repayments now, but for some of the time she should have been paying in the last few years she wasn't employed. So maybe she will be partly exempt. Just concerned that the debt may have been transferred to a collector and she'll have to deal with them to clear the arrears then with student loans to service the loan. Link to comment Share on other sites More sharing options...
tonyman Posted September 28, 2015 Share Posted September 28, 2015 From the many posts on here over the years about debt we've learnt that personal debt cannot be chased from UK to Australia BUT debts to Government and Student loans can. So from that I assume she's going to have to find a way to pay it back. Assuming she is earning over the minimum amount where repayments kick in of course. i was going to say the same QSS , if ant debts are going to be left , DONT leave any with the Government ......... Link to comment Share on other sites More sharing options...
Bungo Posted September 28, 2015 Share Posted September 28, 2015 i was going to say the same QSS , if ant debts are going to be left , DONT leave any with the Government ......... Third that. This debt is not going to go away, it will not be limited by time or distance. It is only going to get bigger. Link to comment Share on other sites More sharing options...
Jacaranda Posted September 28, 2015 Share Posted September 28, 2015 I agree with others.Make arrangements asap to repay it.It is a loan,its not optional whether your gf pays it back. Link to comment Share on other sites More sharing options...
Guest Posted September 28, 2015 Share Posted September 28, 2015 Ring them up and say you can only afford to pay so and so extra in your arrears and set a repayment plan. Think they see any money as a good result from their end. Link to comment Share on other sites More sharing options...
Dee1 Posted September 28, 2015 Share Posted September 28, 2015 My daughter is also now living in Australia and has a student loan from UK. Part of the condition when taking the loan is that you keep the loans company informed of your current address. She did this and was duly sent a financial questionnaire to complete. She was then told that she did not have to repay anything this year - a huge relief after all the moving costs. My daughter knows that she will have to repay the loan at some point, after all without it, she wouldn't have her degree and without her degree she wouldn't have the job she loves and probably wouldn't be enjoying life here in Australia! I'd encourage your girlfriend to do the right thing. If for no other reason than to avoid a life constantly looking over her shoulder! Link to comment Share on other sites More sharing options...
scuffythetugboat Posted September 28, 2015 Share Posted September 28, 2015 The best advice with any debt problems is speak to the lender and come to some sort of agreement. You'll sleep better. Link to comment Share on other sites More sharing options...
GooseRenders Posted September 28, 2015 Share Posted September 28, 2015 I'm moving to Aus next year and spoke with the Student Loan Co on the phone to ask what the deal would be. It's pretty much exactly the same. I will have to inform them as soon as I get there, fill out a financial statement and once earning over a certain amount, a sum will be deducted from my wages. I hate debt and there is no way I want that building up for the rest of my life. The sooner it's gone the better! Link to comment Share on other sites More sharing options...
flatpack Posted September 28, 2015 Share Posted September 28, 2015 Don't listen to the self righteous, they cannot do anything at all to her brother. Even if they go get. County Court judgement at his address it will be in your girlfriends name and not his. If they have the same name he can get a notice of disassociation. It would then be illegal credit reference agencies to give out any of her credit file when a search was undertaken for him. If you go back to the Uk for a holiday they won't be waiting at the airport, it's a debt, no more no less. Don't stress too much. If you can pay it back then you should but don't let it give you sleepless nights. Link to comment Share on other sites More sharing options...
scuffythetugboat Posted September 28, 2015 Share Posted September 28, 2015 Don't listen to the self righteous, they cannot do anything at all to her brother. Even if they go get. County Court judgement at his address it will be in your girlfriends name and not his. If they have the same name he can get a notice of disassociation. It would then be illegal credit reference agencies to give out any of her credit file when a search was undertaken for him. If you go back to the Uk for a holiday they won't be waiting at the airport, it's a debt, no more no less. Don't stress too much. If you can pay it back then you should but don't let it give you sleepless nights. This must be the reply the OP was hoping for. Link to comment Share on other sites More sharing options...
EnglishBird007 Posted October 11, 2015 Share Posted October 11, 2015 If she has PR your sister can celebrate as she basically will never have to pay it off unless she decides to move back to the UK and work there. It's possible to chase her down here in OZ and make her pay but I haven't heard of this ever being accomplished (can ANYONE provide me a link to an article where this happened?? Probably not.) I know a Canadian man that got PR in OZ, he bragged about not having to pay a six figure student loan back home. Since it is a civil issue, the police are not concerned with it.. Only NZers can be arrested for doing such things. Link to comment Share on other sites More sharing options...
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