Quick question re student loans

markwilkinson

Not my student loan lol, a decade or 2 has passed since I was at Uni.

However, does the Student Loan Company report to CRA's?

Someone I work with has one outstanding and it is their only debt, was wondering if they should be encouraged to pay it off quicker.

CLAPTON

old style loan that are defaulted are reported to CRAs
post 1998 loans are not

markwilkinson

Given the persons age I would imagine its a post 1998 loan.

There's no question of default, it gets paid as and when this person does enough overtime to take them over the threshold.

This is quite frightening for someone like myself. They owe a fair bit, but don't have to pay anything unless they earn over a certain amount.

marywooyeah

there is a student moneysaving forum - this may get more responses there if a board guide will move it.

CLAPTON

markwilkinson wrote: »

Given the persons age I would imagine its a post 1998 loan.

There's no question of default, it gets paid as and when this person does enough overtime to take them over the threshold.

This is quite frightening for someone like myself. They owe a fair bit, but don't have to pay anything unless they earn over a certain amount.

why is that frightening; it's the law

markwilkinson

CLAPTON wrote: »

why is that frightening; it's the law

Which is part of my OP. is there an incentive to pay it off early, will paying it early help this persons credit score?

Tixy

Won't help their credit 'score; or rating in the slightest.

The only possible positive might be say if they were applying for a mortgage - they'd have less debt to declare on their mortgage application.
But its a very cheap form of debt. If there is any chance they are thinking of applyign for a mortgage they would probably be better using any surplus towards saving for a deposit not overpaying the loan.

CLAPTON

markwilkinson wrote: »

Which is part of my OP. is there an incentive to pay it off early, will paying it early help this persons credit score?

if it is not reported on credit reports then it doesn't affect the credit score.

your government has decided that there are absolutley no incentives to pay early; indeed if you leave it long enough the debt is written off.

in fact your current government wanted to create an reverse incentive to pay early by making an early repayment charge but that was dropped as being one step of libdem lunacy too much

Dunroamin

Paying off a student loan early is a really pointless tactic on so many levels.

markwilkinson

CLAPTON wrote: »

if it is not reported on credit reports then it doesn't affect the credit score.

I realise that which is why I asked a fairly simple (so I thought....) question regarding student loans and reporting to CRA's.

CLAPTON

markwilkinson wrote: »

I realise that which is why I asked a fairly simple (so I thought....) question regarding student loans and reporting to CRA's.

no, you asked at least two questions.

you asked one simple question.. do they affect credit score.. answer - no

and then one more complex question of whether they ought to be encouraged to pay early.. answer - a matter of opinion.