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  • FIRST POST
    • eclareb
    • By eclareb 15th Feb 17, 10:53 PM
    • 64Posts
    • 20Thanks
    eclareb
    Old Student Loan.. will this be written off? confused!
    • #1
    • 15th Feb 17, 10:53 PM
    Old Student Loan.. will this be written off? confused! 15th Feb 17 at 10:53 PM
    I have 3 student loans from 91, 96 and 97.

    These have now been sold to erudio.

    I dont earn over the minimum threshold for repayment.

    Will the terms of my loans be those that were applied at the time of taking out the loans or have these/can these be changed when they were sold?

    Im confused. Ive been reading loads of sites and theres lots of different information and Im not sure whats current or applicable.

    I will be 50 this year.
    Will they be written off then?
    If thats the case, will that only be the amount of the loan or the full amount outstanding, ie will they still be able to pursue me for charges and outstanding costs incurred?
Page 1
    • AnotherJoe
    • By AnotherJoe 15th Feb 17, 11:13 PM
    • 7,243 Posts
    • 7,755 Thanks
    AnotherJoe
    • #2
    • 15th Feb 17, 11:13 PM
    • #2
    • 15th Feb 17, 11:13 PM
    What charges and outstanding costs are you referring to ?

    There is a whole section on here on when loans are repayable. This says your loan is wiped
    http://www.moneysavingexpert.com/students/student-loans-repay#tabTwo
  • National Debtline
    • #3
    • 16th Feb 17, 3:12 PM
    • #3
    • 16th Feb 17, 3:12 PM
    Hi eclareb,


    When the old style loans were sold on the existing terms and conditions should've remained the same, including the right to defer.


    The Student Loan Company has published some information about when loans are no longer payable - http://www.slc.co.uk/services/collection-of-loan-repayments/loan-cancellation.aspx It would seem, based on your post, that yours wouldn't be written off until you are 65 (assuming you don't earn above the threshold before then).


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • CakeCrusader
    • By CakeCrusader 17th Feb 17, 1:41 PM
    • 356 Posts
    • 161 Thanks
    CakeCrusader
    • #4
    • 17th Feb 17, 1:41 PM
    • #4
    • 17th Feb 17, 1:41 PM
    Loans pre 1998 are statute barred provided you have not deferred/made a payment or acknowledged the loan within the past 6 years; https://www.nationaldebtline.org/EW/factsheets/Pages/time-limits-for-recovering-debts/statute-barred-debt.aspx

    "Student loans
    There are ‘old style’ and ‘new style’ student loans. Old-style student loans are for students who started their university course before September 1998. New-style student loans apply to students starting their course from September 1998 onwards.

    The Limitation Act says that the limitation period for student loans is six years.

    The cause of action (when the limitation period starts running) for old-style student loans, is usually when the loan became due for repayment in the April following the conclusion of your course. However, if you asked for it to be deferred within the six year limitation period, this would have restarted the limitation period.

    For new-style student loans, the cause of action is likely to be when your earnings reach the set level at which deductions from your wages can begin. Because the Student Loan Company can take money directly from your wages, it might be more difficult to use the Limitation Act. Contact us for advice."

    They are written off once you either turn 65, or if you've deferred for the last 25 years, or if you become permanently disabled and unable to work; http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678571&_dad=portal

    I told them over the phone that mine was statute barred (1995-1998 loan and I last made a payment in 2002) and they sent a letter a few days later confirming that it was and they would take no further action.

    I hope this helps!
    • SamanthaB
    • By SamanthaB 7th Sep 17, 8:15 AM
    • 1 Posts
    • 0 Thanks
    SamanthaB
    • #5
    • 7th Sep 17, 8:15 AM
    • #5
    • 7th Sep 17, 8:15 AM
    As I understand it it will expire when you are 65. I have been deferring for years too from 94-98 loans, debt is now around £7.5K; my employer calculated the repayment would only be £25/month anyway, so I'm not so afraid of it anymore!
    • yogavenger
    • By yogavenger 10th Sep 17, 1:14 PM
    • 3 Posts
    • 0 Thanks
    yogavenger
    • #6
    • 10th Sep 17, 1:14 PM
    • #6
    • 10th Sep 17, 1:14 PM
    I have three loans from 1992-93. I had deferred until recently – the last year and half. Does the 25 year limitation still apply? My first loan will be 25 years old (+ 6 months) now (in Sept '17). The next in 6 months and so on. Should these be written off at this time, in which case I will contact the loan company.

    Erudio sent me a statement but have made no mention of the loans being written off. They also have hiked the interest from 1.60% to 3.10%. How are they able to do this?

    Thanks for any help anyone can give.
    • yogavenger
    • By yogavenger 10th Sep 17, 1:19 PM
    • 3 Posts
    • 0 Thanks
    yogavenger
    • #7
    • 10th Sep 17, 1:19 PM
    • #7
    • 10th Sep 17, 1:19 PM
    Actually it might be 25 + 1 year not 6 months (I'm presuming the loan required repaying a year after I took it. I can't find the original agreement). So the first might be eligible to cancel next March ('18).
    • Lungboy
    • By Lungboy 11th Sep 17, 11:41 AM
    • 1,077 Posts
    • 1,033 Thanks
    Lungboy
    • #8
    • 11th Sep 17, 11:41 AM
    • #8
    • 11th Sep 17, 11:41 AM
    I hope this helps!
    Originally posted by CakeCrusader
    The 65 years bit is wrong, mortgage style student loans end if you reach 50 or after 25 years, whichever comes first.

    I have three loans from 1992-93. I had deferred until recently – the last year and half. Does the 25 year limitation still apply? My first loan will be 25 years old (+ 6 months) now (in Sept '17). The next in 6 months and so on. Should these be written off at this time, in which case I will contact the loan company.
    Originally posted by yogavenger
    The dates are all worked out from when the final loan taken became due for repayment, so 25 years after you received your final loan.
    Last edited by Lungboy; 11-09-2017 at 11:43 AM.
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