Student Loan Cancelling

Symboy

Just heard a rumour that student loans (over 10 years old) that you have not earned enough to pay off can be cancelled. Has anyone else heard this or is it a rumour that has no substance?

elisebutt65

:rotfl::rotfl::rotfl::rotfl::rotfl:

eslick

for old style pre 1999 I think, it was 25 years

[Deleted User]

Your student loan only gets written off if you are permanently unable to work eg severely disabled, or you reach retirement age or if you die.

elisebutt65

drinkupretty wrote: »

Your student loan only gets written off if you are permanently unable to work eg severely disabled, or you reach retirement age or if you die.

My Salary last year was £14990!! only another 21 years to retirement to go:D

eslick

from the student loan website
When will student loans be cancelled?
There are circumstances where your student loan
may be cancelled so that you never have to pay it
back. This depends on the rules at the time you
take out a loan. If you have taken out a student
loan in the past for a different period of study, your
loan may be cancelled under slightly different
circumstances. If you are not sure about the
cancellation rules that will apply to your loan,
please contact the SLC.
In England, Scotland and Wales, if you entered
higher education before 1 September 2006, and
have already taken out a student loan for that
period of study, the SLC will cancel your loan plus
any interest:
• when you reach the age of 65;
• if you die before you pay the loan off; or
• if you become permanently disabled and are
registered as being unfit for work.
In England and Wales, if you entered higher
education after 1 September 2006, or if this is the
first time you have taken out a student loan for
your current period of study, the SLC will cancel
your loan plus any interest:
• 25 years after the April when you first became
responsible for paying back the loan (rather than
when you reach the age of 65);
• if you die before you pay the loan off; or
• if you become permanently disabled and are
registered as being unfit for work.
In Scotland, these conditions apply but your loan,
plus any interest, will not be cancelled until 35
years after the April when you first became
responsible for repaying the loan.

recyclingbox

Symboy wrote: »

Just heard a rumour that student loans (over 10 years old) that you have not earned enough to pay off can be cancelled. Has anyone else heard this or is it a rumour that has no substance?

I had my student loan over ten years ago and i managed to get it cancelled last year.

i did this by paying back all the money i owed them. Dead easy.....

o_t_e

From this website:

All student loans have a finite life span but how long they last depends on the type of loan you’ve got and when you took it out.

Pre-1998 loans are wiped clean in the following circumstances:

• 25 years after your repayments were due to start, even if some (or all) years' payments have been deferred
• If you reach the age of 50, unless you were over 40 when you took out the loan, then it's 60
• If you become permanently unfit to work
• If you die

Loans taken between 1998 and Sept 2006 are wiped clean in the following circumstances:

• When you reach 65
• If you become permanently unfit to work
• If you die

Loans taken after Sept 2006 are wiped clean in the following circumstances:

• If they're not repaid 25 years from the first April of graduation/when you were first due to repay
• If you become permanently unfit to work
• If you die

Glad I was at college when these were first introduced - no fan of the conservatives but at least they didn't make you start paying them back until you were on a 'graduate wage' which by their definition is currently 25K. Had a cousin who must fall into the middle section; she had to start paying back once she earned 10.5k - effectively minimum wage - good one Labour.

derbydebtor

o_t_e wrote: »

From this website:

All student loans have a finite life span but how long they last depends on the type of loan you’ve got and when you took it out.

Pre-1998 loans are wiped clean in the following circumstances:

• 25 years after your repayments were due to start, even if some (or all) years' payments have been deferred
• If you reach the age of 50, unless you were over 40 when you took out the loan, then it's 60
• If you become permanently unfit to work
• If you die

Loans taken between 1998 and Sept 2006 are wiped clean in the following circumstances:

• When you reach 65
• If you become permanently unfit to work
• If you die

Loans taken after Sept 2006 are wiped clean in the following circumstances:

• If they're not repaid 25 years from the first April of graduation/when you were first due to repay
• If you become permanently unfit to work
• If you die

Glad I was at college when these were first introduced - no fan of the conservatives but at least they didn't make you start paying them back until you were on a 'graduate wage' which by their definition is currently 25K. Had a cousin who must fall into the middle section; she had to start paying back once she earned 10.5k - effectively minimum wage - good one Labour.

Ah so Labour extened the length you had to repay your student loan. I'm one of the 98-06 students. Thank you very much Mr Blair.

CLAPTON

derbydebtor wrote: »

Ah so Labour extened the length you had to repay your student loan. I'm one of the 98-06 students. Thank you very much Mr Blair.

why is it so unreasonable to repay the taxpayer the loan once your earnings are sufficient .. you're only asked to pay 9% of any income in excess of 15,000 pa.