Student Loan

sabelu

My son finished degree 18 monthsago and has since been travelling, funded by savings etc. SLS have asked for proof/and or income details and since written to say they will not pursue at least until end of 2010. What are the rules re this etc, when will he need to start paying, does anything such as living abroad etc affect this? Is there a point at which his loan gets written off?

CLAPTON

the answers are all contained in the paperwork he received when applying for the loans and is also available on the SLC website

he is liable to start repaying in the April after graduation
he only actually pays anything if his monthly income is above 1,250 (i.e 15k per annum)
if he works abroad then he needs to tell the SLC and there are different limits on how much he needs to pay
if he isn't working he needs to keep the SLC informed of what he is doing

seems a little early to talk about writing off his loan

sabelu

Just wanted to know the rules thankyou.

[Deleted User]

I thought the only point at which they were written off was at retirement age?

fermi

woodbine wrote: »

I thought the only point at which they were written off was at retirement age?

Not any more:

http://www.moneysavingexpert.com/loans/student-loans-repay#should

2006 - Current

• 25 years from the first April of graduation (when you were first due to repay)
• or; Unfitness to work
• or; Death

But as said, not something that applies to the OP's son any time soon.

Oldernotwiser

sabelu wrote: »

My son finished degree 18 monthsago and has since been travelling, funded by savings etc. SLS have asked for proof/and or income details and since written to say they will not pursue at least until end of 2010. What are the rules re this etc, when will he need to start paying, does anything such as living abroad etc affect this? Is there a point at which his loan gets written off?

There are quite stringent penalties if someone is abroad and doesn't tell the SLC about it. He must keep in touch with the SLC and provide the information they require or he'll accrue charges.

Poolie

The paperwork has to be completed before April 2010 and returned to SLC. Failure to do so may result in being charged £218 per month onto his account as a penalty charge. If he is travelling overseas he will need to prove how he is supporting himself (bank statements are fine).

The problem will be getting the form to SLC as they will not accept the form unsigned nor signed by yourself. It has to be signed by your son. The only way round it is for your son to grant access to your account in a written letter then you can complete the form on his behalf.

The bank statements have to be dated within last 3 months.

sabelu

Poolie wrote: »

The paperwork has to be completed before April 2010 and returned to SLC. Failure to do so may result in being charged £218 per month onto his account as a penalty charge. If he is travelling overseas he will need to prove how he is supporting himself (bank statements are fine).

The problem will be getting the form to SLC as they will not accept the form unsigned nor signed by yourself. It has to be signed by your son. The only way round it is for your son to grant access to your account in a written letter then you can complete the form on his behalf.

The bank statements have to be dated within last 3 months.

This has been done he has dispensation until Aug 2010.

Poolie

When your son returns he will need to inform SLC otherwise he could fall fowl of the rules. He will then be asked what he is doing once he is back in the UK and how he is being supported if not working or self employed.