Should I Pay Off My Student Loan? 2008/09 article discussion

Oldernotwiser

suhow wrote: »

I took out a student loan in 1993/94 and although I have paid some back I still owe about £2000. I am at the moment out of work and I am 50 years old. Is there a time limit for when student loans have to be paid back and also, is there a time scale when theyare wiped out and you don't have to repay them?

On the old style "mortgage" based loans, any outstanding balance is wiped out when you reach 50, unless you were over 40 when you took them out, in which case it's when you reach 60.

Oldernotwiser

Mixolydian wrote: »

Great topic fellas. Very useful.

I have a question for you:

I'm a music student and I'm finishing my degree this year.
Ok, the thing is, as a session, live musician, and private teacher, I don't get formal or legal paperworks or payslips, so how do I show to the student loan company what's my wage? Also, I don't have a NIN, never needed one. It seems like there's a big loophole about the musician activities in the system. I don't know how I'm going to pay the thing off.

any ideas?

cheers

See replies to your other post.

Chris2685

Awwww

They have started making repayments now...
STUDENT LOAN -£23

Dang

Oldernotwiser

Chris2685 wrote: »

Awwww

They have started making repayments now...
STUDENT LOAN -£23

Dang

Oh good, we can all work out what you earn now!:D

Chris2685

Not really, I'm a contractor so my schedule-E expenses off-set my true earnings :P

Poolie

Roll on the 21st April at 09:30. We find out what the rate for March's RPI figure will be. This will determine the Student Loan interest rate for ALL loans from September 2009 till August 2010.

Amazingly, it is the date before the budget! Is Chanceller Darling about to put the negative interest rate to bed, if RPI is negative, by setting it the next day to 0%. It will completely unfair if they do not allow it to go negative as we (Students) have had to suffer the higher rates when the economy was doing well so why can we not be allowed to benefit when it is suffering. The government is borrowing left right and centre so a few more millions is not going to blow the bank.

sly_dog_jonah

March RPI just announced: -0.4%. What will that mean for interest rates on post-1998 and pre-1998 loans come September?

Poolie

It should mean all student loans are reduced to -0.4% but the government has not confirmed the rate yet. Just wait till they try to change the regulations.

cdl911

Having read the article I an still unsure as to whether I should pay off my (and my wife's) loans.

I am a Company Director and as a result neither pay personal tax nor make contributions to my loan, since the deductions are made through an assessment of your PAYE. If the current circumstances prevail I could conceivably work until I am 65 and never make another contribution to paying off my loan. This seems somewhat cheeky! Should I pay it off manually?

Additionally, my wife is expecting a baby and will give up work. This puts her in a similar position, with no PAYE earnings she will stop contributing to the repayment of her loan too. Is this they way it is meant to be?

Thanks in advance for your help.

Chris

Oldernotwiser

It's certainly the way it's supposed to be in your wife's case, I have no idea about your situation.