missed student loan deferment because of illness - any advice please?
Three years ago, because I started suffering from depression, I forgot
to apply for the annual deferral of my Student Loan (they couldn't
send reminders either, because I'd also forgotten to tell them my new
address).
I've been continuously unemployed (and therefore eligible for
deferral) ever
since, as I'm still on Income Support on the grounds of my depression.
I was hoping that the Student Loans Co might backdate my deferral to
the date I *should* have applied, but when an advice centre contacted
them on my behalf the reply was that they could only backdate deferral
for three months. They said they would only pursue the arrears if I
found employment, but this doesn't ease my mind much: normally you
don't begin repaying until you start earning 80% of the average wage,
but since I'm in default, I think they'll expect me to do it even if
I'm on a small wage
(which will probably be the case, since I haven't had a job for a long
time).
Even if the repayments are set at a reasonable level, at the age I am
now (50) I can expect to have this debt hanging over me for the rest
of my life.
I'm in the depressing position of thinking I'll still be on the
poverty line even if I get a job, and this is really getting to me.
My only hope seems to rest in the fact that for the entire period I'm
referring to, I have satisfied the 'important' part of the loan
contract, in that I was entitled to deferral the whole time - it was
just that, being muddled-headed because of my illness, I failed to
claim that entitlement. I don't know if that helps me at all - any
advice on this please?
One problem is that I've no way of knowing how much discretion the
Student Loans Co have on this 'three weeks maximum deferral' rule -
the advice agency that approached them on my behalf told them of my
illness and that didn't cut any ice with them, but then that was only
a first approach.
So I'm posting this in the hope that anyone in this ng has been able
to negotiate some leniency from this company. I'm sure I can't be the
only one who's got into this sort of mess, just through being ill.
You can get the Student Loans company to wipe out the debt if your
doctor writes them a letter confirming that you will not recover from
your illness or will not be able to work again.
If you have a reasonable GP it may be worth asking them, saying how much
stress it would remove from you