Student Loan Repayments when terminally ill?

mrcol1000

I left a UK university in 2004 owing full student loan. I was a mature student in my 20's at the time. I am now in my 30s. I got a full time job and began repayments automatically taken. Six months ago I was retired by my employer on ill health as I have progressive terminal disease. Although its terminal I am expected to live at least another 10 years. I am claiming ESA and in the support group. I currently get both contribution based and income based. I am claiming this until my employer pays my ill health pension which has been a slow progress. At this point I obviously will stop claiming ESA. Short of a miracle I won't ever be able to do any kind of full time work again.

Student loans have been in touch to say that they have been informed I am no longer in employment and want to know what is happening. Obviously I will explain the situation but I just wondered if anyone knew what happens regarding my student loan? My ill health pension will fall just below being enough for them to claim loan repayments and I doubt it will ever increase that much to go above the level.

I hope this is in the right forum and any help would be appreciated. I would just like a rough idea of what happens before I get in contact with them. Thanks.

the-mango

The repayments won't increase, if you fall below teh repayment threshold they'll stop. If you pass away before you pay it off it's cancelled.

Sorry that was a really short answer but I hope it coveres everything?

Dunroamin

From the SLC website,

"All lending is also written off on death (the account holder's estate must provide the death certificate) or permanent disablement or illness (if the account holder is likely to be permanently unfit for work, the account holder or someone acting for him under Power of Attorney must produce a statement to this effect from the relevant medical authority).

In practice an account holder in these circumstances and whose repayments are collected through the tax system will not as a rule incur a repayment obligation since being unable to work again is likely to have no earnings against which a repayment obligation could be assessed.

However, since this account holder may have a source of unearned income, it may still be necessary to apply for the write-off."

Hope that helps.

mrcol1000

Thank you both for your help.