student loan written off at 60?

[philip]

I was obliged to take out a student loan in 1998. Just over £1000. Since then due to low income it has been deferred each year.
I will be 60 in Nov.Am I right in thinking it is written off when you reach that age?

[kr15snw]

I always thought it was 25 years after you took the loan out, but that may just be on the new system.....

[philip]

But my team's in the cup final!

[finbow]

The answer to this comes from Martin himself on MSE.


"Loans pre-1998 that haven't ever been in arrears are wiped clean 25 years after your repayments started (even if payments have previously been defferred), if you reach the age of 50 (60 if you were over 40 when you started the loan), if you become permenantly unfit to work or if you die.

If post-1998 loans haven't been repaid, possibly due to consistently earning less than the payments threshold, once you reach 65 (for loans taken before September 2006) or 25 years from the first April of graduation (for loans after September 2006) debts are wiped clean. They are also cancelled if you become permenantly unfit to work"

HTH

[pinkshoes]

Originally Posted by finbow

The answer to this comes from Martin himself on MSE.


"Loans pre-1998 that haven't ever been in arrears are wiped clean 25 years after your repayments started (even if payments have previously been defferred), if you reach the age of 50 (60 if you were over 40 when you started the loan), if you become permenantly unfit to work or if you die.

If post-1998 loans haven't been repaid, possibly due to consistently earning less than the payments threshold, once you reach 65 (for loans taken before September 2006) or 25 years from the first April of graduation (for loans after September 2006) debts are wiped clean. They are also cancelled if you become permenantly unfit to work"

HTH

So basically those who did their degree between 1998 and 2005 got a really cr*p deal!!

[Blacksheep1979]

not really - you still got a cheap loan that gets written off after a period of time, seems pretty good to me.

[Oldernotwiser]

Originally Posted by pinkshoes

So basically those who did their degree between 1998 and 2005 got a really cr*p deal!!

Repayments for the earlier loans were much higher and not on a sliding scale. Once you went over the line you were immediately hit for quiite high repayments as posters on here have found.

[candygirl]

OOh thanks for that info Finbow

[u2o]

Originally Posted by finbow

The answer to this comes from Martin himself on MSE.


"Loans pre-1998 that haven't ever been in arrears are wiped clean 25 years after your repayments started (even if payments have previously been defferred), if you reach the age of 50 (60 if you were over 40 when you started the loan), if you become permenantly unfit to work or if you die.

If post-1998 loans haven't been repaid, possibly due to consistently earning less than the payments threshold, once you reach 65 (for loans taken before September 2006) or 25 years from the first April of graduation (for loans after September 2006) debts are wiped clean. They are also cancelled if you become permenantly unfit to work"

HTH

So what happens if you die with post-1998 loans?? :confused:

[Mikeyorks]

Originally Posted by u2o

So what happens if you die with post-1998 loans??

....... you've just become 'permanently unfit to work?'

[TehJumpingJawa]

Originally Posted by finbow

The answer to this comes from Martin himself on MSE.


"Loans pre-1998 that haven't ever been in arrears are wiped clean 25 years after your repayments started (even if payments have previously been defferred), if you reach the age of 50 (60 if you were over 40 when you started the loan), if you become permenantly unfit to work or if you die.

If post-1998 loans haven't been repaid, possibly due to consistently earning less than the payments threshold, once you reach 65 (for loans taken before September 2006) or 25 years from the first April of graduation (for loans after September 2006) debts are wiped clean. They are also cancelled if you become permenantly unfit to work"

HTH

Sorry to resurrect a dead thread - but what about people who took out their loans in 1998? (beginning university in the academic year of 1998-1999 for instance)
What is the date that the pre-1998 system was replaced by the post-1998 system?

[pinkshoes]

er... 1998??

If you started your course in 1998 (i.e. did A Levels in June 1998), then you're on the new system

[mboro]

Originally Posted by Mikeyorks

....... you've just become 'permanently unfit to work?'

OMG I just spat tea over my laptop.

sorry, I cant be off any help in this thread but that quote really made my day.

[PinkPig]

Originally Posted by pinkshoes

So basically those who did their degree between 1998 and 2005 got a really cr*p deal!!

Pre-1998 the repayments were fairly horrible, and post-2005 top-up fees came along and so most people have about £2000 a year extra debt! So, all things considered, 1998 to 2005 people aren't doing so badly.

[associatejeans]

I had a pre-1998 loan that i always deferred payment to. have just checked on new online service and it says that loan was repaid in full.

[andyrules]

Originally Posted by associatejeans

I had a pre-1998 loan that i always deferred payment to. have just checked on new online service and it says that loan was repaid in full.

Are you over 60? Sorry to be cheeky but you sound like you weren't expecting that!

Just to clarify a bit of the link by Martin - for the pre-1998 loans, if you were 39 when you took out your loan but then took a further one out for your next year, then they lump it all together and you wait till you're 60, not 50.

[andyrules]

Originally Posted by PinkPig

Pre-1998 the repayments were fairly horrible, and post-2005 top-up fees came along and so most people have about £2000 a year extra debt! So, all things considered, 1998 to 2005 people aren't doing so badly.

more like £3-3.5k

[PinkPig]

Originally Posted by andyrules

more like £3-3.5k

The 2005 fees (before "top-up fees") were a fixed rate of £1,175, and top-up fees were introduced as a maximum of £3,000, so the extra isn't as much as that. Impressive thread revival!

[QuestionsQuestions]

I took out student loans 1992-1995 I have always been able to defer repayments however, there was one year where due to moving around a lot i was too late to defer and had to pay them some money. How does this affect when my loan is written off?

Thanks

[papalaz]

Does anyone know the answer to that last query? Im in the same situation, pre 1998 loans, always deferred except for one payment when i was late getting form in. Are they written off after 25yrs? when u reach 50? or 60?
(i was in my 20's when i took out the loans)