Writing off Students Loans

maxit

Here I am, , merrily and 'voluntarily' paying off my student loan, trying to stay on top of the interest but not earning enough to 'have to' start paying it off, . However, I have been told that the loan will be written off under certain circumstances, and since I was a mature student and am now closer to retirement than puberty, my sources say I should stop paying it. Of course the Student Loans Company are not volunteering this information, but if somebody else is in the know, I, and many other maturing graduates would like to be too.

studentphil

Student loans are writen off at retirement or after 25 years if you take them out from sept 2006.

System

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

wrexhamandy

I'm sure if you die it's wiped off........:o

melancholly

found this on their website:

Repaying the loan

Repayments are due from the April after you leave your course (the start of the new financial year).

You have to repay nine per cent of your earnings over £15,000 (or the monthly or weekly equivalents). So, someone earning £18,000 a year will pay back nine per cent of £3,000 (£18,000 minus £15,000) which works out at about £5.19 a week. The more you earn, the faster you repay the loan. You can repay more than this if you wish.

Outstanding loans are written off:

* when you reach 65 (loans taken out before September 2006)
* after 25 years (student loans taken out for the first time in September 2006 or later, even if you are already on a course)

To find out more, see ‘How and when you repay your student loan (courses starting from 1998)’ or use the online ‘Student loan repayment calculator’.

dribsndrabs

Question - how do you prevent money for student loan repayments being docked from your wages when entering new employment?

rhig

Work cash in hand?

Seriously I don't think you can, you are supposed to have them taken like tax. If your employer is smaller maybe get them to reduce your pay and give you more benefits which are effectivly cash but non taxable e.g. supermarket vouchers as bonuses.

I'm not sure how a contractor would pay off their loan though, if you create a company and are contracted by your current employer you could pay yourself less while keeping the rest of the money in the company you created. It might not be worth the hassle doing that for 25 years until the amount is written off though.

dribsndrabs

It's just that in previous employment, deductions for student loan repayments have always been visible on my wage slip. I just wanted to know that if i go into new employment that i can opt out of such payments and indeed, how to do so.

bambi1980_2

I left uni in June 2002 which meant effectively I should have started paying it off by March 2003. I wasn't earning enough at first but I've been earning over £20,000 since September 2003 and they haven't deducted a penny. I can't understand why unless they've got my tax mixed up.
Luckily I didn't take a huge loan out.

Princess_kate

it says its wiped if its not paid off within 25 years if the loan is taken out after september 2006, if you took it out before then does it ever get wiped or will i be payin it back forever & ever!!!
Kate

Crabman

I thought these get wiped off once a [STRIKE]crab[/STRIKE] person reaches 50??