Medical School Loan

TATA box

Hi I am a final year medical student. I owe BOI slightly over 18000 euro. I have paid about 1000 euro so far. But as college is on, it is difficult to keep up payments. I have spoken to the bank over and over about my situation, but they said that I should see things from their own point of view; that they've loaned me money and they want it back. I explained that I would be done next March and start working in July as a qualified doctor. They didn't buy that, wished me luck but insisted that I keep up with the payments.

My sister is the guarantor for this loan and She is the reason I have kept up payments so far. But we have now both agreed that I should stop payments as it is not possible with studies.

My question is how soon will BOI bring us to court? Will there be need for this?

I have like 10-11 months to qualify.

coylemj

Didn't the bank know that you were a student when they loaned you the money?

What was their expectation in relation to getting the loan cleared - was there an agreed payment schedule and if you agreed to one, how did you expect to make regular payments with no income?

endacl

Make regular payments. They don't have to be full payments. Throw them a tenner a month and tell them you are paying them back.

TATA box

coylemj wrote: »

Didn't the bank know that you were a student when they loaned you the money?

What was their expectation in relation to getting the loan cleared - was there an agreed payment schedule and if you agreed to one, how did you expect to make regular payments with no income?

I am enrolled in Graduate Entry Medicine (GEM), a 4 year medical program for prior degree holders. My understanding at the time of taking out this loan was that I start paying back when I qualify. Yearly fees are 16000+, so the banks would give you 15000 yearly and you make up the rest. I partly funded the fees myself, taking out 15000 in 2nd year. Most student that take out this loan start paying pack when they qualify. When I put this to the bank, they said it was on a case by case basis and want me to start paying back or else they'd make my sister pay the whole sum.

TATA box

endacl wrote: »

Make regular payments. They don't have to be full payments. Throw them a tenner a month and tell them you are paying them back.

This is a great idea. Thanks

Toots

Just FYI, if you let the loan go into arrears, both your and your sister's credit rating could be affected.

Avatar MIA

TATA box wrote: »

This is a great idea. Thanks

Go in and meet them. Tell them that you will not deal with them as a bank after you qualify if they don't become more reasonable.

Studying to be a doctor and paying back a loan is very tough. The bank were potentially mis-selling if you could not afford the loan from the outset.

As said above keep your credit history in mind, hopefully BOI will come to their senses, you'll be earning decent money in a year's time.

beechwood55

TATA box wrote: »

My sister is the guarantor for this loan and She is the reason I have kept up payments so far. But we have now both agreed that I should stop payments as it is not possible with studies.

How will your sister's credit rating be affected if you take this step? Is she going to be looking for a mortgage for example? Did she know what she was agreeing to when she agreed to be your guarantor?

TATA box

Thanks for your replies guys. Like I said earlier, we both thought that I would start paying back the money when I qualify and start working. Like someone said here I have been mis-sold this loan.

I am not worried about credit rating. My debt is already in arrears. I hardly take out loans as I have only ever taken out loan twice.

I have two options. Drop out of college and work hard in the next 3-4 years to payback the debt or ignore them for now and finish paying back within 6 months of qualification. I think most people will choose the former. I'll have to explain this to my sister though.

notharrypotter

The bank were potentially mis-selling if you could not afford the loan from the outset.

and

Didn't the bank know that you were a student when they loaned you the money

and

Like someone said here I have been mis-sold this loan.

From reading the OP has taken out a specific student loan available for specific courses.
One of which is medicine.

The bank were aware that the OP was a student and requested a guarantor => the sister.

The sisters circumstances have changed and the bank is rightly concerned over their money.

But it has to be said that my guarantor has gone back to college and does not have same prior earning capacity.

So its very unlikely you were mis-sold the loan.

we both thought that I would start paying back the money when I qualify and start working.

You need to check what you and your sister signed immediately.
Then make an appointment with the bank to work out a payment plan, post potential graduation if possible.

Toots

TATA box wrote: »

I am not worried about credit rating. My debt is already in arrears. I hardly take out loans as I have only ever taken out loan twice.

What about your sister though? That could leave a black mark on the ICB for her until 5 years after the loan is cleared so if she was looking to buy a house or car or even get a credit card at any stage in the next 5+ years, this could have serious consequences for her.

Trish56

I know AIB give out loans to student Doctors that are not repaid until you qualify. Perhaps you can enquire from them to see if they would take over the loan.

I also think it's worth your while to call to your local branch and speak with the manager and let him/her know that you and your family will be taking your business elsewhere when you qualify. I would also advise the Manager that you are writing to their CEO.

I'm not too sure that you were mis-sold the loan as you must have received an agreement which would have outlined your repayments or the fact that you make no repayments until qualified.

I would also advise you not to stop paying as both you and your sister will have problems in the future when applying for a mortgage or any loans. Perhaps the bank might agree that you pay interest only until you qualify.

Avatar MIA

Trish56 wrote: »

I know AIB give out loans to student Doctors that are not repaid until you qualify.

That's good advice.

dev100

Firstly look at your paperwork and see what you signed surely it had on when your repayments would start and end ?

Make an appointment to meet someone from the bank and have the loan RE financed ie to a lesser and manageable amount.

They will go after your sister if that is the easier option for them.