Student Loans Being Cancelled

russ_l

I was arguing with as friend as I’m sure the rules have changed. If you got a student post 2006 is it cancelled after 25 years whether it is paid off or not? The likelihood is, only making the minimum payments, it won’t be paid off after 25 years. Does that mean we, the tax payer, will foot the bill for all these students getting into debt after 2006?

Many thanks

Russell

anotherpaul_2

russ_l wrote: »

I was arguing with as friend as I’m sure the rules have changed. If you got a student post 2006 is it cancelled after 25 years whether it is paid off or not? The likelihood is, only making the minimum payments, it won’t be paid off after 25 years. Does that mean we, the tax payer, will foot the bill for all these students getting into debt after 2006?

Many thanks

Russell

It is indeed written off after 25 years (as opposed to at age 65, for the pre-2006 loans).

I don't know exactly how the SLC is funded, but I suspect they effectively buy the loans from the government at a discount, so the tax payer has already paid the write-off cost.

CLAPTON

anotherpaul wrote: »

It is indeed written off after 25 years (as opposed to at age 65, for the pre-2006 loans).

I don't know exactly how the SLC is funded, but I suspect they effectively buy the loans from the government at a discount, so the tax payer has already paid the write-off cost.

The SLC is a wholely state owned enterprise and you/me pay the full cost of any student defaults.

anotherpaul_2

CLAPTON wrote: »

The SLC is a wholely state owned enterprise and you/me pay the full cost of any student defaults.

Ah, that goes a long way towards explaining why they are so inefficient at collecting on the loans.