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Should I take a student loan?

Can debtors take my student loan?

  • I went to a debt agency for advice and got given a letter that shows my outgoings are more than my income. They told me to send on this letter to my debtors. I tried to give it to my bank who refused to accept an offer of £1 a month and demanded i pay £40 a month. I cannot realistically afford this. However, i didn't declare to the debt agency that i am a student and i am receiving a student loan in a few weeks because i was sure that debtors cannot take my student loan because it's government funded (the same reasons they can't take child credit tax etc) but i tried google and can't find the legislation to back this up in the UK - only in America. The reason i'm worried is because my debt is with my bank where my student loan is about to go into and i'm scared that they will take all of it! Can anyone help?

  • Answer:

    I'm afraid they can. For your sake and so you have some money, open a basic account with another bank and get your student loan paid into this. You should have time to change your account details with the Student Loan company if you act quickly. Do this today or tomorrow - you might get your account details then and there to give to the loan people. That is the only thing I can suggest.

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you are the debtor, the people you owe money to are your creditors. your bank could take money out of your account, better open an account at a different bank. 2nd ly go to citizens advice bureau for free help and advice, do it now, take as much detail as you can.

First of all you keep saying debtors when you mean creditors. Debtors are people that owe you money.Creditors are people you owe money to. The simple answer to your question is, yes, the bank will simply absorb whatever money is paid in to your account to offset any debt. That would include your student loan. You need proper advice. I suggest you visit your local Citizens Advice Bureau without delay. Edit. You don't say how much you owe the bank, but I'm struuggling to believe that the CAB advised you to offer £1 per month. I have dealt extensively with the CAB and in my experience that is not the sort of advice they give. Especially when the bank are asking for £40 per month! Are you certain it was the Citizens Advice Bureau you spoke to, and that you gave them all the facts?

I'm afraid they can. If it is paid into your bamk account them the bank will take it.

Do you have a student counselor at your school? Yes ... then ask if they have the latest details about student loans and your obligations to pay it back. Also check if they have a financial adviser who they can recommend to help with the debt agency. If you don't have a student counselor then look to your local government to recommend a not-for-profit financial adviser and book the earliest appointment to discuss your issue. Sometimes you need to go to an expert and delegate the money negotiations to someone who does this regularly. Maybe they can negotiate an affordable amount of repayment? Good luck!

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