Main site > MoneySavingExpert.com Forums > Essential Money > Loans > Student Loan Write Off (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
Student Loan Write Off
Reply
Views: 40,009
Thread Tools Search this Thread Display Modes
# 1
ChloeRadshaw
Old 01-10-2008, 2:42 PM
MoneySaving Convert
 
Join Date: Jun 2008
Posts: 137
Default Student Loan Write Off

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
ChloeRadshaw is offline
Reply With Quote Report Post
# 2
firesidemaid
Old 01-10-2008, 2:52 PM
Serious MoneySaving Fan
 
Join Date: Dec 2006
Posts: 1,998
Default

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.
From April 2007: Mortgage paid off so far £61115

Mortgage to go! £44560 Every Penny's a Prisoner!
firesidemaid is offline
Reply With Quote Report Post
# 3
davetrousers
Old 01-10-2008, 2:57 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Jul 2007
Location: Down South
Posts: 5,208
Default

I thought it was when you turn 65 (years old)
.....

davetrousers is online now
Reply With Quote Report Post
# 4
marshallka
Old 01-10-2008, 3:15 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Oct 2006
Posts: 14,494
Default

Quote:
Originally Posted by ChloeRadshaw View Post
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 hope not - this sort of thing maddens me.

My son went to work for £2 per hour to earn and learn at the same time.
marshallka is offline
Reply With Quote Report Post
The Following 3 Users Say Thank You to marshallka For This Useful Post: Show me >>
# 5
markelock
Old 01-10-2008, 3:34 PM
Serious MoneySaving Fan
 
Join Date: May 2008
Location: my own little world
Posts: 1,598
Default

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?
markelock is offline
Reply With Quote Report Post
The Following User Says Thank You to markelock For This Useful Post: Show me >>
# 6
robnye
Old 01-10-2008, 3:35 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Mar 2004
Location: i'm here, where are you?
Posts: 5,325
Default

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....
robnye is offline
Reply With Quote Report Post
# 7
marshallka
Old 01-10-2008, 3:45 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Oct 2006
Posts: 14,494
Default

Quote:
Originally Posted by robnye View Post
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)
Funny that is... when i was earning under 15K and had debts I still had to pay mine off or else I got CCJ's.:rolleyes: My son has never had a loan yet and has managed to live without one and gain some qualifications as well.:rolleyes:

I hope you are right with the 25 years thing
marshallka is offline
Reply With Quote Report Post
# 8
marshallka
Old 02-10-2008, 8:40 AM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Oct 2006
Posts: 14,494
Default

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.
marshallka is offline
Reply With Quote Report Post
The Following 2 Users Say Thank You to marshallka For This Useful Post: Show me >>
# 9
birduk
Old 02-10-2008, 9:50 AM
MoneySaving Stalwart
 
Join Date: Dec 2007
Posts: 456
Red face

Quote:
Originally Posted by ChloeRadshaw View Post
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!
birduk is offline
Reply With Quote Report Post
The Following User Says Thank You to birduk For This Useful Post: Show me >>
# 10
birduk
Old 02-10-2008, 9:55 AM
MoneySaving Stalwart
 
Join Date: Dec 2007
Posts: 456
Default

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.
birduk is offline
Reply With Quote Report Post
# 11
marshallka
Old 02-10-2008, 1:47 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Oct 2006
Posts: 14,494
Default

Quote:
Originally Posted by birduk View Post
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.
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!!!".

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.

Last edited by marshallka; 02-10-2008 at 2:11 PM.
marshallka is offline
Reply With Quote Report Post
# 12
dorry
Old 02-10-2008, 2:00 PM
Serious MoneySaving Fan
 
Join Date: Aug 2004
Location: by the seaside
Posts: 1,416
Default

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
dorry is offline
Reply With Quote Report Post
# 13
birduk
Old 02-10-2008, 2:22 PM
MoneySaving Stalwart
 
Join Date: Dec 2007
Posts: 456
Default

Quote:
Originally Posted by marshallka View Post
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 is offline
Reply With Quote Report Post
# 14
birduk
Old 02-10-2008, 2:24 PM
MoneySaving Stalwart
 
Join Date: Dec 2007
Posts: 456
Default

Quote:
Originally Posted by marshallka View Post
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?
birduk is offline
Reply With Quote Report Post
The Following 2 Users Say Thank You to birduk For This Useful Post: Show me >>
# 15
Vanillaman
Old 21-03-2010, 5:32 PM
MoneySaving Newbie
 
Join Date: May 2009
Posts: 2
Default

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.
Vanillaman is offline
Reply With Quote Report Post
# 16
Happytogetdebtfree
Old 21-03-2010, 5:56 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Sep 2008
Posts: 6,694
Default

God luck with finding the information you need re student loans :-)
I AM A MONEY MAGNET, THEY ARE MAKING MORE MONEY FOR ME AS WE SPEAKMIKES MOB, DFW NERD 1071, DFW LHS 132!MIRACLES HAPPEN I'VE SEEN IT WITH MY OWN EYES. LBM 08£77240.69 Current outstanding total £42706.34 Paid so far = £34534.35
Happytogetdebtfree is offline
Reply With Quote Report Post
# 17
Liz3yy
Old 21-03-2010, 6:20 PM
Serious MoneySaving Fan
 
Join Date: Sep 2008
Posts: 1,181
Default

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.
They have the internet on computers now?! - Homer Simpson

It's always better to be late in this life, than early in the next
Liz3yy is offline
Reply With Quote Report Post
# 18
gmang
Old 21-03-2010, 6:38 PM
MoneySaving Convert
 
Join Date: Mar 2009
Posts: 169
Default

Quote:
Originally Posted by Liz3yy View Post
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.
gmang is offline
Reply With Quote Report Post
# 19
Oldernotwiser
Old 21-03-2010, 6:51 PM
PPR
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Jan 2007
Posts: 35,647
Default

Quote:
Originally Posted by Vanillaman View Post
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/loa...nt-loans-repay
Oldernotwiser is offline
Reply With Quote Report Post
# 20
Raggs
Old 22-03-2010, 8:29 AM
MoneySaving Stalwart
 
Join Date: Dec 2009
Posts: 698
Default

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.
Raggs is offline
Reply With Quote Report Post
Reply

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT +1. The time now is 11:46 AM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 20 August 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

TuneChecker Top Albums

  • TAYLOR SWIFT1989 (DELUXE)
  • COLLABROSTARS
  • ED SHEERANX (DELUXE EDITION)

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.