What's my next move? ~500k bursary debt

[primarye]

@doomicross How do you rack up so much debt and not finish uni?

 

[danmillward]

@primarye Could be 2-3 years worth + res + interest.

Idk how much fees are now but when I was at uni 15 years ago you could've cleared R80k per year easily for tuition + res + living expenses

 

[4jesus233]

@danmillward 80 k only covers one year of studying these days

 

[ejd]

@4jesus233 Yip, you’ll be lucky to get a MBA for under 300k these days.

 

[clertole]

@doomicross Putting aside the morality of not paying back a debt, my personal experience is based on credit card debt. Standard bank issued me a credit card at age 16, long before I should ever have been entitled to one and well before I had the maturity to manage it. My parents did not co-sign and it was before the NCA in 2007.

Naturally, I got into a lot of debt and couldn’t pay it back. After a while I was threatened with blacklisting by their collections department. When I stated that they should never have given me the card and that our agreement was not enforceable, the lady politely told me that since I had made a payment against the debt while a legal adult, I had tacitly acknowledged the debt.

So, before you do anything consult an attorney, they certainly are. Again, morality aside, you need to level the playing field.

 

[yosaoller]

@doomicross The "If you don't finish the course, pay back the money" clause is quite common

If you still have a copy of the contract, get advice from a lawyer

 

[fae2fae]

@doomicross Was it a bursary or a loan? It it was a legitimate bursary you shouldn't have to pay back hard cash. Possibly work for the company for a few years. What were the terms of them paying for your studies?

 

[cami777]

@doomicross Have you acknowledged debt within the last 3 years? If not just let them know it prescribed. They can keep asking but they can’t get a court order.

If they want money let them go to court.

There are cheap online lawyer services that’ll give advice and help you navigate.

I had a very senior person eat his hat because he tried to claim for a prescribed debt they phoned me daily so I got the big bosses private email bastard

 

[prachi]

@doomicross How can you sign up for debt at 16 years old?

 

[kabs]

@doomicross on the face of the situation this is what I see:

1. You signed the contract at 16 years old - contract can still be valid if it was ratified by a parent or guardian. Did this happen? Did a parent or guardian consent to the terms?
2. Often the case is, if you passed the course and got the degree that the bursar paid for, you won’t necessarily have to pay them back, but where you don’t, depending on the terms of the agreement the bursar may be entitled to claim it back.
3. In the event that the bursar is in fact legally able to claim back the money and they successfully argue such in court, you won’t be expected to hand over R500 000 immediately. Courts do consider your financial situation and may formulate a payment plan for you to pay back the money.

My advice however is seek out some form of legal assistance, a law clinic, legal aid or pay for an attorney.

Good luck

 

[tamara05]

@doomicross Unfortunately, student debt doesn't prescribe. I'm in the same boat as you. The only difference is that I made payment arrangements with the Uni a month before I lost my job..

I was then served summons amounting to ~ R200k. Now, I'm making small payments of about R100 p/m as I'm currently unemployed + without a degree.

 

[thecookdebra]

@tamara05 Student debt absolutely does prescribe in SA- you are not in the USA- someone sold you big one

 

[tamara05]

@thecookdebra This was legal advice I received, sir. Government funding (NSFAS) for context.

 

[thecookdebra]

@tamara05 This just changes the period for prescription to 15 yrs(gov loan debt), but it still prescribes

Prescription Act 68 of 1969 s11"

Periods of prescription of debts
The periods of prescription of debts shall be the following:

(a) thirty years in respect of -
(i) any debt secured by mortgage bond;
(ii) any judgment debt;
(iii) any debt in respect of any taxation imposed or levied by or under any law;
(iv) any debt owed to the State in respect of any share of the profits, royalties or any
similar consideration payable in respect of the right to mine minerals or other
substances;

(b) fifteen years in respect of any debt owed to the State and arising out of an advance or
loan of money or a sale or lease of land by the State to the debtor, unless a longer period
applies in respect of the debt in question in terms of paragraph (a);

(c) six years in respect of a debt arising from a bill of exchange or other negotiable
instrument or from a notarial contract, unless a longer period applies in respect of the
debt in question in terms of paragraph (a) or (b);

(d) save where an Act of Parliament provides otherwise, three years in respect of any other
debt.

 

[frangipani]

@tamara05 Student debt does prescribe in SA. It's functionally and legally no different from any other debt.

 

[4jesus233]

@tamara05 Why did you not finish if your studies were paid for?

 

[tamara05]

@4jesus233 The amount needed for me to complete my studies (4 years) was greater than the amount I was funded for (2 years). Hence, I was financially excluded at the end of my 3rd year. Historical debt amounted to ~R150k (now ~R200k incl. Interests)

Luckily, I was not asked to pay back the bursary. However, the difference is what I'm paying.

 

[hexhammer]

@doomicross Debt becomes prescribed (null and void) uf the company has not requested debt repayment or you acknowleding said debt fornthree years.

 

[thecookdebra]

@hexhammer after the debt became due, which may or may not have been only after a certain date/time/event. So it could be prescription only started running now/recently

 

[ejd]

@thecookdebra People need to be careful with this mindset. You could still get classified as a defaulter, regardless if the debt has lapsed.