Avoid ever having to pay back your student loan

irnbru1970

hi,

I took out student loans (in Scotland) before 1998 and have deferred since that time. I remember when I was at Uni that we had 25 years to pay it off or it was cancelled. But just wondering the truth in this.

When are student loans before 1998 cancelled or written off? and please could you link the page to it - as I seem to be reading different theories and just want the facts!

many thanks in advance

irn

Oldernotwiser

irnbru1970 wrote:

hi,

I took out student loans (in Scotland) before 1998 and have deferred since that time. I remember when I was at Uni that we had 25 years to pay it off or it was cancelled. But just wondering the truth in this.

When are student loans before 1998 cancelled or written off? and please could you link the page to it - as I seem to be reading different theories and just want the facts!

many thanks in advance

irn

See my earlier post on this thread. (25 Feb)

Zziggi

irnbru1970 wrote:

hi,

I took out student loans (in Scotland) before 1998 and have deferred since that time. I remember when I was at Uni that we had 25 years to pay it off or it was cancelled. But just wondering the truth in this.

This is certainally true of England. I finished my first degree in 1997 and this is DEFINITELY the case for me (so i guess for you as well). If you never earn enough to start paying your loan back within 25 years of finishing your degree, then it is written off.

Sammz

See, I always thought it was 15 years in Scotland (1994). Got my letter in today. Another year of deferment for me. Can't see me ever earning £2034.

Oldernotwiser

Zziggi wrote:

This is certainally true of England. I finished my first degree in 1997 and this is DEFINITELY the case for me (so i guess for you as well). If you never earn enough to start paying your loan back within 25 years of finishing your degree, then it is written off.

Sorry, pre 1998 loans are cancelled when you reach 50 (or at 60 if you were over 40 when you took them out).

sbcsexeter

poppy_f1 wrote:

well i've veen deferring mine since i graduated in 00 and im assuming since each year im signing and sending back the deferment forms its classed as acknowledging the debt is mine down to the communication

Hi Sorry for the long post, but this is worth noting if you are a disabled student in receip of a War Disability Pension (granted after service in HM Forces results in the alocation of a Disability Pension from the WDP department at Norcross, administered by the MoD).

The student loan company has given disabled students a complete waiver of their benefits, unless you were in receipt of a War Pension. This was not on their list of "Approved" disability benefits, so was classed as contributing toward Gross Income. A bit unfair, as if you receive a War Pension, it is paid in place of certain Disability benefits, which are excluded from consideration in calculations for gross income. I earned just £16,000 a year, and under the older "mortgage" style student loan system, was entitled to earn around 2100 per month before eligible to pay student loan repayments. A basic salary of £16000 plus a few hours overtime amounting to a gross monthly income of 1600 per month, plus my war pension put me around £4 over the limit. I had assumed that when I was self-employed, and my gross income was 15,000 pa, that my War Pension was automatically beoing disregarded, as my deferment was approved year on year.

I contacted the SLC over this, and they kept sending a standard letter lising approved benefits, and saying as "YOU ARE NOT IN RECEIPT OF THESE APPROVED BENEFITS, YOUR BENEFIT IS TAKEN INTO ACCOUNT AND YOU MUST PAY."

I took this up with my MP, and was put in touch with the Dept for Education and Skills, who simply restated the case put forward by the SLC. I contacted the MOD, and the DforE&S aain, stting out the chapter and verse of the various War Pension Acts, Social Security Acts and so on. The matter dragged on, and my Student Loan Account got into serious arrears, as I knew if I paid them anything, then I would never see it again. Eventually, I simply wrote to the Department for Education and Skills, and basically told them that their interpretation of the law and the Social Security Acts was flawed, and asked their permission to formally approach a solicitor with a view to applying for Legal Aid to take the whole of the Student Loan Regulations before a Court to Judicially Review their interpretation of existing law, in particular where Statutory Benefits for the Disabled and War Pensioners were concerned. This would have cost them quite a bit in legal fees, and probably more on my part, especially if I lost. Anyway, I bluffed them out, a furious exchange of letters went on for a few weeks, then it went all quiet. Just as I was preparing to write them another letter, they finally replied, agreeing with my point of view, and informed me that the the SLC would now be reviewing the case.

I wrote to the SLC, asking for a deferment backdated to the first refused deferment, and all monies paid to offset my alleged indebtedness be returned, with interest. Most of the money was paid by my wife, on her credit card, when badgered by representative of Smith Lawson and Company, the SLC's own Shylocks and strongarm merchants. (Thereby hangs another tale).

As the SLC were misinterpreting a law which in turn had been misconstrued by the DofE (as it was then) when setting up the Student Loan System, they were at fault regarding Disbility Pensions and War Pensions.

This may not affect many people, but for those who are in receipt of a War Pension, War Widows Pension or similar this sets a precedent. I am now pursuing the SLC for all money paid to Smith Lawson & Company, and a waiver of all outstanding arrears, plus reinstatement of my now sullied Credit Rating.

Hope this helps a few more people, and thanks for reading this far...

Nigel

dmg24

andyrules wrote:

dmg - 1998, there was a big recruitment drive that year to bump up numbers. I think it was also the year the GTP started.
Cheers

Think it came in at some point after 2000 (possibly 2002?), but not 100% sure so certainly worth checking?

Hope you get something sorted x

Mr_Vot

stebiz wrote:

Student loans can't be written off until you are 65.....not even through bankrupcy.

http://en.wikipedia.org/wiki/Student_loan#United_Kingdom

Stebiz

i was told by my LEA that if you dont earn over £20,000 within 5 years of graduating, you dont have to pay it back.

melancholly

Mr_Vot wrote:

i was told by my LEA that if you dont earn over £20,000 within 5 years of graduating, you dont have to pay it back.

that really just sounds wrong - if you got that in writing from your LEA then that would be amazing!

AddieH

melancholly wrote:

that really just sounds wrong - if you got that in writing from your LEA then that would be amazing!

No, this is most definitely a very ill informed member of staff!