Old style student loan and turning 50

Beverley

I started my degree course in 1997 so my student loans are all the old style loans which are 'wiped' when borrowers turn 50. I was 50 earlier this week and am wondering whether I should contact the loan company to tell them this - I know they should know it but do I need to officially notify them or is everything done automatically?

iolanthe07

Beverley wrote: »

I started my degree course in 1997 so my student loans are all the old style loans which are 'wiped' when borrowers turn 50. I was 50 earlier this week and am wondering whether I should contact the loan company to tell them this - I know they should know it but do I need to officially notify them or is everything done automatically?

Are you sure they are wiped? My daughter has an old style loan and has been told that the time limit is 25 years regardless of your age. You might want to check this out.

fermi

Old style loans contained the following clause.



'Whichever is sooner' is the important bit I think..

Dunroamin

Beverley wrote: »

I started my degree course in 1997 so my student loans are all the old style loans which are 'wiped' when borrowers turn 50. I was 50 earlier this week and am wondering whether I should contact the loan company to tell them this - I know they should know it but do I need to officially notify them or is everything done automatically?

When I reached 60 (mature student with old style loan) I certainly reminded them of the great event!

fermi

While your liability should be cancelled whether you do anything or not under those terms (as I read it), I would certainly contact them and request that they confirm the cancellation in writing.

cherrybee*

Hi, - I have just received a new deferment form for my student loan which I return every year as I have never earned enough to begin paying back but a friend tells me that my loan should have been wiped when I was50, I will be 57 next week. I started my course in 1995 when I was a 38 yr old single parent of 4 and took out loans in 95,96,97 and the last in 98 which were my only form of income. I have read several posts on this site which seem to indicate that as I was under 40yrs when I began my four year degree course in 1995 the loans should have been wiped by now. Advice on this would be welcome. Thank you.

claret_mike

May be worth asking on student board

http://forums.moneysavingexpert.com/forumdisplay.php?f=25

Mickeydamupppet

It's fairly easy to find info stating that old style loan debt can be wiped at 50 if taken out before the age of 40 (as long as not in arrears) but i have been having trouble getting clarification on something and trying to avoid talking to the company who have bought my loan off the SLC - don't trust them either.

My question is... what if the loan goes into arrears, but i clear the arrears. Do I still have the right to get the remainder wiped at 50?

Secondly, I read this on the Honourstudentloans site:

"If you were under the age of 40 when you took out the last of your student loans, and your earnings have never reached the threshold required to begin repayment of your loans, Honours Student Loans will automatically cancel your loans when you reach the age of 50. This is dependent on your loans having no arrears at the time of cancellation."

I have never read anywhere that having paid PART of your loan off means you can never get the remainder written off. can anyone advise?

Thanks

CharlieJulietGolf

I first researched this back in 1999, when I graduated, and I formed a very strong impression that the loans would only be wiped at 50, if you were under 40 at the time of your last loan, or 60 if you were over 40 at that time AND you had never had to make a repayment because your earnings were too low.

In my case, the SLC lost - or rather, claimed not to have received - my original application for a deferral on grounds of income, so I made another. By the time they eventually contacted me again to say that they still had not received an application, payments were already due and according to them I was in arrears. I have been in dispute with them regarding this ever since and have repeatedly requested that Honours (SLC's successors as loan administrators) have the matter arbitrated.

My earnings have never been within £5k of the threshold for repayment of the "mortgage style" loans and I subsequently had deferrals from 2000 up to and including 2014 when Honours refused my application because of the disputed arrears. I turn 60 in June 2016, so any advice would be welcome.

fermi

The actual regulations that replaced the T&Cs from the original loans say that:

12. The lender will cancel the borrower’s liability to repay the loan if the borrower—

(a) dies,

(b) is not behind on any repayments under any agreement for a student loan and—

(i) was under the age of 40 when his last agreement for a student loan was made and he reaches the age of 50 or when the last agreement for a student loan has been outstanding for not less than 25 years, whichever is the sooner, or

(ii) was aged 40 or older when his last agreement for a student loan was made and he reaches the age of 60, or

(c) if the borrower can show the lender that he gets a disability related benefit and because of his disability is permanently unfit for work.

fermi

CharlieJulietGolf wrote: »

I first researched this back in 1999, when I graduated, and I formed a very strong impression that the loans would only be wiped at 50, if you were under 40 at the time of your last loan, or 60 if you were over 40 at that time AND you had never had to make a repayment because your earnings were too low.

In my case, the SLC lost - or rather, claimed not to have received - my original application for a deferral on grounds of income, so I made another. By the time they eventually contacted me again to say that they still had not received an application, payments were already due and according to them I was in arrears. I have been in dispute with them regarding this ever since and have repeatedly requested that Honours (SLC's successors as loan administrators) have the matter arbitrated.

My earnings have never been within £5k of the threshold for repayment of the "mortgage style" loans and I subsequently had deferrals from 2000 up to and including 2014 when Honours refused my application because of the disputed arrears. I turn 60 in June 2016, so any advice would be welcome.

If you are in 'arrears' so technically 'behind' on payments, the the letter of the law says the loans will not be cancelled at 50 or 25 years or 60, whichever applies to you.

So if they say you are in arrears, and you believe that is wrong and/or unfair, then you need to complain formally to SLC and Honours and take them to the FOS if they do not sort out those arrears issues.

In your case since you've already complained previously, I would contact the FOS now to see what they think about where your case is now.

Depending on the nature and timing on the responses to your previous complaints on the issue, the FOS may be able to go ahead with their formal side of the complaint process now, or you may have to resubmit your complaints and wait a bit.

Contact the FOS to see what the think.

See: http://www.financial-ombudsman.org.uk/consumer/complaints.htm