Student Loan Write Off
ChloeRadshaw
Posts: 137 Forumite
in Loans
Does anyone know what the situation is with student loan write offs?
I got a student loan in 2001->2005 and got left with a 20K Loan.
I heard that if you do not work for ten years then this gets written off but I find that difficult to believe
Does anyone know under what circumstances this loan gets written off?
Thanks
I got a student loan in 2001->2005 and got left with a 20K Loan.
I heard that if you do not work for ten years then this gets written off but I find that difficult to believe
Does anyone know under what circumstances this loan gets written off?
Thanks
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Comments
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hopefully someone else with more knowledge will come along.....
one thing i have learnt from these forums is that even if you become bankrupt, it will not include student loans - they have to be paid off.0 -
I thought it was when you turn 65 (years old).....0
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ChloeRadshaw wrote: »Does anyone know what the situation is with student loan write offs?
I got a student loan in 2001->2005 and got left with a 20K Loan.
I heard that if you do not work for ten years then this gets written off but I find that difficult to believe
Does anyone know under what circumstances this loan gets written off?
Thanks
My son went to work for £2 per hour to earn and learn at the same time.0 -
I am annoyed and dissapointed at the same time.
However I think I know where you are coming from. Why not ring up a debt advice place, or CAB?
if you borrowed it, you should pay it back?Remember the time he ate my goldfish? And you lied and said I never had goldfish. Then why did I have the bowl Bart? Why did I have the bowl?0 -
i believe that you start paying back once you start earning £15k per year at 9% per month.
if you are not working, then you cant pay anything back as you wont be getting £15k per year in benefits (although i might be wrong)
the loan is written of if you havent paid it all back within 25 years (but i may have the wrong figure there)smile --- it makes people wonder what you are up to.... :cool:0 -
i believe that you start paying back once you start earning £15k per year at 9% per month.
if you are not working, then you cant pay anything back as you wont be getting £15k per year in benefits (although i might be wrong)
the loan is written of if you havent paid it all back within 25 years (but i may have the wrong figure there)
I hope you are right with the 25 years thing:D0 -
Student loans
Student loan agreements are simple contracts and this gives the Student Loans Company (SLC) 6 years from the date you last paid or acknowledged the debt to go to court to enforce the agreement. There are two sorts of student loans and different rules apply depending upon when you took out the loan.
Old style or “mortgage” student loans are consumer credit agreements. Payments cannot be automatically deducted from your wages. The SLC has to go to court before they can enforce the debt against you. This means that the Limitations Act can apply if you have not paid or acknowledged the debt for over 6 years. (Asking for the loan to be deferred could count as acknowledging the debt and start time running again).
From September 1998 new style or “income contingent” student loans include rules to say that repayments are automatically deducted directly from your wages or through your tax return if you are self employed. This means that the SLC are still allowed to take money from your wages for a loan over 6 years old as they do not have to go to court to do so.0 -
ChloeRadshaw wrote: »Does anyone know what the situation is with student loan write offs?
I got a student loan in 2001->2005 and got left with a 20K Loan.
I heard that if you do not work for ten years then this gets written off but I find that difficult to believe
Does anyone know under what circumstances this loan gets written off?
Thanks
Oh I'd love if it that were true. I got my first loan in 1997, so at least one would be written off my now (the join of doing all that post-education education).
The figure of 25 years is correct. For the new-style student loan, as soon as you earn over £15k it will be automatically deducted from your wages on a sliding scale (more you earn, more you pay). For old-style loans (i.e. you started uni in 1997 or before), you will need to earn £26k and then you will pay back a fixed amount- no matter how much more you earn.
If you do not earn over this 'threshold' in the next 25 years, they will stop chasing you for them.
My advice- get a job, pay off your debts and stop worrying about something that may never have to worry you. They will find you when you earn over that threshold and they will take their money!0 -
Oh and Marshallka, before you start waxing lyrical about your son earning £2 an hour, there are many many students that do the same to pay their way- don't be taring everyone with the same brush.
I earned practically a full-time wage at a rather profitable supermarket every year of my education- which consequently suffered, to pay my bills. I also took out a full loan every year and indebted myself up to the eyeballs with my bank. Plenty of students have to do this just to get by.
I am happy that your son doesn't have a massive debt hanging round his shoulders before he even starts his first 'real job' with nothing to show for it except a degree certificate- but he is blooming lucky to be in that situation. Don't ever forget that.0 -
Oh and Marshallka, before you start waxing lyrical about your son earning £2 an hour, there are many many students that do the same to pay their way- don't be taring everyone with the same brush.
I earned practically a full-time wage at a rather profitable supermarket every year of my education- which consequently suffered, to pay my bills. I also took out a full loan every year and indebted myself up to the eyeballs with my bank. Plenty of students have to do this just to get by.
I am happy that your son doesn't have a massive debt hanging round his shoulders before he even starts his first 'real job' with nothing to show for it except a degree certificate- but he is blooming lucky to be in that situation. Don't ever forget that.
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!!!".
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.0
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