Repay Loan?

kizzyfur22

Hi,

I'm hoping you wonderful people might be able to give me some advice.

I took out a student loan way back in 1996 for £2.8k,
I graduated in 1998 & have been deferring repayments since.
Current Interest rate 5.30% (RPI linked)
Balance outstanding after 17 years is £4.5k
Current salary £16k

Need to earn £27k before I start repaying it, which I honestly can't see myself earning in my lifetime (wishful thinking perhaps!! )

I have read that the debt gets written off after either 25 years of if I turn 50, whichever is soonest or if I die. Is this true?

Also should I keep deferring as I am doing?

Any advice greatly appreciated thanks

malkyh

Go you, borrow the money and bump paying it back.

[Deleted User]

kizzyfur22 wrote: »

I have read that the debt gets written off .....if I die. Is this true?

I'd probably keep it as a back up plan for now.

Tixy

Yes for student loans from that period they are written off when you reach 50, or 25years since your last loan was taken out.

If you earning under the threshold then it makes sense to keep deferring.