Student Loan Write Off

245

Comments

  • dorry_2
    dorry_2 Posts: 1,427 Forumite
    hi,

    i have the new style student loan and it can only be written off, if you turn 60/65?? not sure if she depends on which age you get your pension, or if you can prove that you are no longer able to work

    you only pay back student loan if you earn over £16,000 a year, they will still take it out of your wages direct, even if you earn under 16,000, if this happens you send your p60 into them and they send you a cheque of what you have paid over the year


    hth
    'If you judge people, you have no time to love them'
    Mother Teresa :D
  • birduk
    birduk Posts: 466 Forumite
    marshallka wrote: »
    I never said he had a "degree certificate" and did not say every student and I am annoyed at our system. Where you say that you indebted yourself every year just to get by that is life. We indebt ourselves to get by by having our mortgage and paying our bills but if we get into debt then we pay them off and always have done. If we don't pay them then we get CCJ'd and also most probably lose our homes. My son worked for an apprenticeship and after doing 12 months of earning £2 per hour and working hard as well they got rid of him as they could then get another mug instead of paying him the minimum wage he was entitled to.

    If every student indebted themselves and then could not get the perfect "real job" paying the "perfect wage" and left the debts to the rest of us then where would this country be.

    My husband is a fully qualified electrician and never went to uni. He got a job and went to college at night and suffered that way. I am not a lover of student loans and all this debt that is often left and written off. My husband earns under 25K now... could we leave all our debts for 25 years that we have purely as he had to learn in the evening. Perhaps he does not have a "real job!!!".

    I apologise for assuming your son had gotten a degree- I am all for apprenticeships. It is what has always been done in my family and I am the first with a degree (subsequently everyone else has gotten one later in life, but that is a completely different thread, along with the rest of this conversation I think).

    I think you will find that the majority of student debt is not just left to the rest of us and students will pay it back given time and circumstance. I don't know where you get this idea from. What on Earth do you think happens to all the other debts that people get written off? They get paid for by you and I eventually in exactly the same way! Only the Student Loans Company does not ask for it straight away- you have to earn the 'threshold amount' first. It seems sensible to me! Oh and to add to your information, many of the pre1998 student loans were sold by the government and the SLC to commercial banks- so they are actually the companies with the liabilities now.

    You can indebt yourself paying your bills and mortgage (as can I), but you also know that your income and outgoings are not going to change substantially in the next couple of years. Hopefully a student/apprentice/trainee will have that option whereby there salary increases massively after qualification- making it a much more sensible option. Would you prefer the days of grants whereby you would pay a lot more in your local taxes for the great increase in students? They would be OK since they don't have to pay them back ever?

    Thanks for twisting what I said about a 'real job'. By this I meant that kind of job that the students are actually trying to train and better themselves for- just like your son!

    And finally.... breathe... in case you didn't notice, I did also say that the OP should pay back their loan when it was asked for and there is a high likelihood that it will never be written off.
  • birduk
    birduk Posts: 466 Forumite
    marshallka wrote: »
    Sorry if i am waxing lyrical here again but I am entitled to post. The OP was asking about if he/she did not work then would the loan be written off. I simply expressed my own views on the subject.

    I think we both agree that the OP should work and pay the blooming loan?
  • Vanillaman
    Vanillaman Posts: 16
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    Hi

    I was wondering the same thing about student loans too. I'm not sure about when it gets written off, but I think that if you do a teacher training course it gets written off or paid for you. You don't have to pay anything back unless you earn over £15k, and even then, its only about £5 per week.

    It infuriates me when people come to forums for help, only to be answered by idiots ranting on with some uselsss, totally irrelevent information. If you've got nothing to contribute, then get lost and go waste someone elses time.
  • God luck with finding the information you need re student loans :-)
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  • Liz3yy
    Liz3yy Posts: 1,301
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    I don't know about the new style loan but I have an old style one. I took out a student loan in 97, 98 and 99.

    The current state of play with mine is that I have to be earning at least £2000 a month in order to have to pay it back, each year I earn less than that I can apply to defer the repayment of the loan.

    I've deferred it every year since I graduated as I'm entitled to.
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  • gmang
    gmang Posts: 171 Forumite
    Liz3yy wrote: »
    I don't know about the new style loan but I have an old style one. I took out a student loan in 97, 98 and 99.

    The current state of play with mine is that I have to be earning at least £2000 a month in order to have to pay it back, each year I earn less than that I can apply to defer the repayment of the loan.

    I've deferred it every year since I graduated as I'm entitled to.

    I'm on this system too. When you compare the two systems it can be better or worse depending on how much you earn.

    The deferment threshold is much better on the old system. Currently you pay nothing as long as you earn less than £27,050 a year (compared to just £15k a year with the new style loans). But, earn a penny more and you start monthly payments, which are calculated so that you make roughly equal paments for 48 months to pay off the loans. The payment amount is likely to be higher than the £90 a month or so you'd pay back under the new system if you earned £27k.
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    Vanillaman wrote: »
    Hi

    I was wondering the same thing about student loans too. I'm not sure about when it gets written off, but I think that if you do a teacher training course it gets written off or paid for you. You don't have to pay anything back unless you earn over £15k, and even then, its only about £5 per week.

    .

    For new style student loans, you don't make any repayments unless you earn £15,000 and then you repay 9% of everything you earn over this.

    It isn't written off if you do a PGCE but this happens 25 or 35 years after graduation, or when you reach 65, depending on which year you took it out.

    Full details here

    http://www.moneysavingexpert.com/loans/student-loans-repay
  • Raggs_2
    Raggs_2 Posts: 760
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    OP, looks like you're with me in the small group in the middle that have to pay it up until the age of 65, whereas a few years later or earlier, the 25 year rule would have come in.

    There again, I suspect in 25 years I'll at least be coming close to paying the thing off anyway.

    I guess the most irritating thing for me, is that I would have actually qualified for a grant, but wasn't savvy enough to check at the time (assumed there were none), and obviously no one was going to hurry along and mention it to me.
  • KrazyKel
    KrazyKel Posts: 492 Forumite
    I was wondering about student loans too! I graduated 2 years ago, and due to health reasons i cant work full time at the moment (Who knows in the future - hopefully will) I was more worried about when i manage to earn full time wage / 15k etc, how much interest will be added and how much longer it will take me to pay it all off!
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