My girlfriends student loan

lanmonkey

My girlfriend took out a student loan in 1998 and the current amount she owes is about £7500.

we understand that she won't have to pay it back until she starts work but she's a stay at home mum and we have no current plans for her to go out and work but she might in a few years.

we tried to look into if/when the debt might be written off but we got conflicting info.

I actually have the money to pay the loan off in full but would rather not have to if we don't need to

what should we do?

Thanks

Mortgage_Reduction_Novice

http://www.moneysavingexpert.com/students/student-loans-repay

You will probably come to the decision that it's best not to make any voluntary repayments since the interest rate is so low and that your money is better in savings.

It will be wiped when she reaches age 65.

Tixy

Assuming she took out her loan from autumn term 98 and is on the newer style income-contingent loans then her debt will not be written off until she reaches the age of 65 (or becomes permanently unfit for work or dies).

lorelei_lou

Mortgage_Reduction_Novice wrote: »

http://www.moneysavingexpert.com/students/student-loans-repay

You will probably come to the decision that it's best not to make any voluntary repayments since the interest rate is so low and that your money is better in savings.

I think this is probably true. What you could consider (if you haven't already) is filling the gap in your partner's national insurance contributions so that she's eligible for a full state pension when the time comes for that? I think most women who take time out of working to care for children end up not making enough payments to qualify and end up with a lower pension?

I have no idea how you go about doing this though but I bet there's something on this site!

cakinwande

I honestly wouldn't worry about it, a student loan is one of the easiest loans to obtain and forget about. I have a student loan and I will probably be paying it back til I'm 65 but I'm not putting anymore money in to top it up, I would rather put the money towards more important things. The interest is so low it's not really worth clearing it. But if you decide to clear it for her, PLEASE MAKE SURE that you draw up a contract between yourselves if you feel £7500 is a lot to part with. You don't want a kind and lovely gesture like this to come back and bite you in the !!!. Good luck

malcolmffc

No need to pay NI credits - you can have the government give you free credits for qualifying years where you have stayed at home.

iolanthe07

malcolmffc wrote: »

No need to pay NI credits - you can have the government give you free credits for qualifying years where you have stayed at home.

This is correct. As long as she is receiving child benefit, then her NI contributions will be credited automatically.

andy.m_2

lorelei_lou wrote: »

What you could consider (if you haven't already) is filling the gap in your partner's national insurance contributions so that she's eligible for a full state pension when the time comes for that?

This is advice is very poor and is best ignored.

lorelei_lou

andy.m wrote: »

This is advice is very poor and is best ignored.

Apologies, I understood this to be true from a relative who has ended up with a large gap in their NI contributions and this is what they've attributed it to. I will set them straight and have learnt my lesson to check things properly before posting!

lanmonkey

ok, so just to be clear, my girlfriends NI contributions have been taken care of, even though she has not worked for 10 years? she gets £40 every 2 weeks and we have one child so I'm pretty sure shes getting child benefit.

Niv

I think for loans of that age the loan gets written off at 50 not 65 (unless she was a mature student). That is the case with mine from that time (although it will be paid off by then anyhow)

Niv.