Repaying Student Loans 2009/10 guide discussion

Avare

All good advice re: not paying off student loan if it means still having or may have a more expensive loan as a result, and the fact that a student loan is not featured on credit checks. However, as in our case, the PAYE deductions need to be removed from the pay-slip as the 'affordability' criteria being used by our potential mortgage provider means that with the deductions we can only borrow 10k less than without them. So we have paid the student loan off. And had a very positive exprience with the student loan representative!

pompeypoppy

Hi all,

I originally took out a student loan for my degree in 2003, so I assume that it will get wiped when I hit 65. However, I am undertaking a PGCE this coming September and will be getting another student loan to help. Does anyone know if this new loan would be considered as separate from my original 2003 loan - this would mean the loan being wiped 25 years after graduation - or whether it will be added on to my original 2003 loan? Wishful thinking would be the old loan combining with the new one so that all of it would be wiped within 25 years!

Thanks

MrsManda

pompeypoppy wrote: »

Hi all,

I originally took out a student loan for my degree in 2003, so I assume that it will get wiped when I hit 65. However, I am undertaking a PGCE this coming September and will be getting another student loan to help. Does anyone know if this new loan would be considered as separate from my original 2003 loan - this would mean the loan being wiped 25 years after graduation - or whether it will be added on to my original 2003 loan? Wishful thinking would be the old loan combining with the new one so that all of it would be wiped within 25 years!

Thanks

I think they'll be counted as separate because you took them out under different T&Cs - under the T&Cs for loans you took for your first degree you agreed to repay until you'd paid off your debt or you reached 65. The T&Cs for your second lot of loans say they'll be cancelled 25 years after they become eligible for repayment.
I have two lots of loans from 2003 and 2008 and this is what I understand from the paperwork I've received.

DaleUnited

Hi all, quick question if I may...

I am currently employed on a 'fixed-term contract', should I still be making loan repayments?

Thanks, Dale

Helix

DaleUnited wrote: »

Hi all, quick question if I may...

I am currently employed on a 'fixed-term contract', should I still be making loan repayments?

Thanks, Dale

Yes, if you are earning over the threshold.

lulastu

Hello,

I finished uni back in 2002, starting in 1998. I have been paying back my loan since entering work. I am now emigrating to Argentina (my wifes place of birth) she is taking on the family business & I will probably have a part time job & look after the kids.

I will not be earning the 9k a year in the student loans matrix.

Will my debt really be cleared after 25 years? I was pondering on just not informing them at all, but after some reading, it suggests this is more beneficial.

Also, if i inherit my parents estate, will they be able to claim anything from that?

Regards,

Stuart

Poolie

lulastu wrote: »

Hello,

I finished uni back in 2002, starting in 1998. I have been paying back my loan since entering work. I am now emigrating to Argentina (my wifes place of birth) she is taking on the family business & I will probably have a part time job & look after the kids.

I will not be earning the 9k a year in the student loans matrix.

Will my debt really be cleared after 25 years? I was pondering on just not informing them at all, but after some reading, it suggests this is more beneficial.

Also, if i inherit my parents estate, will they be able to claim anything from that?

Regards,

Stuart

Your loan would be cleared under the terms which you assigned the original agreement.

You would be required to complete an annual overseas form to state how you are supporting yourself.

Chrisbdh

I am currently paying through salary a student loan taken out in 2004 at the 9% rate. I also have a 1996 student loan that I have been deferring, however, I am now earning over the threshold and cannot defer any longer and if I am made to pay this back, I will be repaying around £200 a month. Can someone tell me if SLC can demand such a high repayment, or will they make a deal.

Poolie

What was your 2004 loan for? If it was a PGCE course then you should be given a choice to repay one loan over the over.

If you didn't do a PGCE then SLC would expect repayments for any loans where your income is above the repayment thresholds.

Chrisbdh

My 2004 student loan is currently being deducted from my salary at 9%. I also have a 1996 student loan that I have been deferring until recently and SLC want me to pay this by direct debit. The total monthly repayment for both will be around £200. That is too much! Can someone tell me if I am already paying one, do I have to pay the full amount they have estimated for the other. Do the SLC allow smaller repayments.