Student Loan - Early Payment

Maykal

Hello there,

I took out two student loans, right when they first came out (91 and 92 if memory serves). The total amount of the debt is now around 1900 GBP. I have never earned enough to start making repayments and so have deferred yearly since then.

As I understand it, after 25 years the debt is wiped clean. This means I have about 9 or 10 years to go. I am very unlikely to be earning more than the lower limit as I live and work abroad. For sure I'll hit the 25 year point before my income gets anywhere close to the threashold.

I was wondering whether the SLC will consider a lump sum discount settlement in this case. When I left university I also had a student overdraft and the bank accepted a one-time payment of about 50% of the owed amount rather than a protracted and slow repayment over several years, and I was happy to take the opportunity to clear that overdraft.

In these leaner times, is the SLC receptive to such early settlement deals? Surely they would prefer a smaller amount up front to another ten years of admin, letters, forms and other costs all to no avail.

Anyone have any experiences to share?

Regards

Rafter

Why would you want to settle when you think you will never be earning above the lower limit?

I would just carry on as you are, but hope that you do start to earn more than the limit at some point.

Good luck

R.

redpete

Maykal wrote: »

I am very unlikely to be earning more than the lower limit as I live and work abroad.

Why does living and working abroad mean that you won't exceed the earnings threshold? Don't foreign earnings count towards it?

Maykal

@Rafter: It's the only debt I have so it would be nice to have a clean balance sheet. Although I'm not going to bust a nut to repay it if I don't need to, if they would be willing to come to some agreement I would certainly be tempted.

@redpete: Foreign salaries do indeed count towards it, but there aren't that many places where salaries are as high as the UK in a direct comparison. I'm in a developing country and although my salary is pretty decent by local standards, it's significantly less than what I'd need to earn in order to cross the repayment threshold.

Robert_Sterling_3

I think the SLC just collect money due on behalf of the government and in accordance with the terms & Conditions.
I do not think it has the power to accept less than the amount due.