Student Loan default - how much should I tell them?

[Hammer]

My wife got into a bit of financial trouble years back and defaulted on her student loan. They caught up with her a few years ago and agreed she would pay back �5 per month, which she has done without fail since then.

They are now asking her to up the payments to �20 per month. Fair enough, it's her debt and she is willing to pay it back. She has agreed to this and it will start next month.

My problem is, they are also insisting that we fill in an income/expenditure form for the entire household so they can work out what is reasonable to pay back. She doesn't work and I support the family, but is it any of their business what I earn? Or what my outgoings are? It's not my debt after all. Can we refuse to answer? Will they leave us alone if we keep up with the increased payments? Money is tight at the mo and I don't really want to end up paying more per month.

[WendyS]

Am not an expert but in normal situations if your wife had an income of her own, I would have expected you, as a separate individual, to have a right of privacy about your own income.   However, as your wife is entirely dependent on your financially I guess you effectively become her income provider and as such, the information would need to be declared.    You could always decline and ask them under what legislation they are enquiring about your financial affairs when the debt isn't yours.  However, don't husband and wife normally end up having to accept responsibility for each others' debts?  

[joko]

as i understand the student loan deal, you only have to begin repayments if you start to earn over a certain amount. As she is not earning anything. she should not be paying anything yet. do they know she is unemployed?

[Hammer]

joko, the trouble is once you default you lose that privelege. They do know she doesn't work but they don't care.