Student Loan - pre/post 2005/06

feeny84

Hi, I think I am in quite an unusual position with regards to my student loan and I would appreciate any insight anyone can provide!

*I first took a student loan from 2003/04 to 2006/07 (so pre 2006) totalling roughly £9500.
*I then qualified for additional funding from SLC for 2009-11 as I was studying a SKE followed by PGCE. During this period I borrowed roughly £15000.
*When I get my statements from the student loan company both these totals are combined.

My question is when is my student loan written off?
*If you take out a loan pre 2005/06 it is written off when you reach 65 years old.
*If you take out a loan after 2005/06 it is written off after 25 years.

I have done some calculations and it doesn’t look like I’ll have it paid off after 25 years (btw I am 29 now). So when will I have to continue to keep making repayments?

I am going to contact the SLC but I wanted to check if anyone else has any information on cases like this first.

Thanks.

soolin

feeny84 wrote: »

Hi, I think I am in quite an unusual position with regards to my student loan and I would appreciate any insight anyone can provide!

*I first took a student loan from 2003/04 to 2006/07 (so pre 2006) totalling roughly £9500.
*I then qualified for additional funding from SLC for 2009-11 as I was studying a SKE followed by PGCE. During this period I borrowed roughly £15000.
*When I get my statements from the student loan company both these totals are combined.

My question is when is my student loan written off?
*If you take out a loan pre 2005/06 it is written off when you reach 65 years old.
*If you take out a loan after 2005/06 it is written off after 25 years.

I have done some calculations and it doesn’t look like I’ll have it paid off after 25 years (btw I am 29 now). So when will I have to continue to keep making repayments?

I am going to contact the SLC but I wanted to check if anyone else has any information on cases like this first.

Thanks.

It is written off when you are 65 for the pre 2005/06 loan and after 25 years for the later loan, exactly as you state in your post. Until that time you pay back any that is due to be paid back based on your level of income.

feeny84

Thanks for replying. As mentioned above, when I get a statement, the two loans are combined (currently around £24000).

I don't really understand where my repayments are going towards. If I got 2 separate statements it would be much easier to follow.

How would they decide how much I have to repay once 25 years is up?

Ed-1

feeny84 wrote: »

Thanks for replying. As mentioned above, when I get a statement, the two loans are combined (currently around £24000).

I don't really understand where my repayments are going towards. If I got 2 separate statements it would be much easier to follow.

How would they decide how much I have to repay once 25 years is up?

I'm in the same position. I don't get how they decide how much of it to write off after 25 years as the balances of both are combined as a total 'plan 1' loan balance. If you can find any clarification out then I'd be interested to know.

By the way, did you qualify for student finance for your SKE year as you shouldn't qualify for student finance for this as there's no tuition fees, but instead can receive an SKE bursary for certain subjects?

feeny84

Ed-1 wrote: »

I'm in the same position. I don't get how they decide how much of it to write off after 25 years as the balances of both are combined as a total 'plan 1' loan balance. If you can find any clarification out then I'd be interested to know.

By the way, did you qualify for student finance for your SKE year as you shouldn't qualify for student finance for this as there's no tuition fees, but instead can receive an SKE bursary for certain subjects?

Yeah I got student finance for SKE (although later found out I shouldn't have) - I wouldn't have been able to do the course otherwise as the bursary barely covered rent in London!

I'll be in contact with SLC this week so if I manage to get any clarification from them I'll post it here.

feeny84

Ed-1 wrote: »

I'm in the same position. I don't get how they decide how much of it to write off after 25 years as the balances of both are combined as a total 'plan 1' loan balance. If you can find any clarification out then I'd be interested to know.

Hi,

I contacted SLC this morning. They said that part of it would be written off after 25 years and I will keep paying the remainder until I'm 65. She said a computer calculates how much will be left to pay after 25 years! I have to write to SLC for further information regarding how this is calculated as she had no idea. If I don't get a satisfactory answer soon I think I should be entitled to withhold payments.

Clive_Woody

feeny84 wrote: »

Hi,

I contacted SLC this morning. They said that part of it would be written off after 25 years and I will keep paying the remainder until I'm 65. She said a computer calculates how much will be left to pay after 25 years! I have to write to SLC for further information regarding how this is calculated as she had no idea. If I don't get a satisfactory answer soon I think I should be entitled to withhold payments.

I appreciate your frustration but I would advise against withholding payment for these loans as this could have an adverse affect on your credit file.

I would write and ask for an explanation as advised, it's not as if this loan is going to end anytime soon.

Niv

feeny84 wrote: »

Hi,

I contacted SLC this morning. They said that part of it would be written off after 25 years and I will keep paying the remainder until I'm 65. She said a computer calculates how much will be left to pay after 25 years! I have to write to SLC for further information regarding how this is calculated as she had no idea. If I don't get a satisfactory answer soon I think I should be entitled to withhold payments.

Not understanding the repayment terms of your loan does notgive you the right to withhold payment. You may think you are going on acrusade for justice but ultimately it will just have an adverse effect on yourcredit rating and you will have to repay what you are due to pay regardless.

CLAPTON

feeny84 wrote: »

Hi,

I contacted SLC this morning. They said that part of it would be written off after 25 years and I will keep paying the remainder until I'm 65. She said a computer calculates how much will be left to pay after 25 years! I have to write to SLC for further information regarding how this is calculated as she had no idea. If I don't get a satisfactory answer soon I think I should be entitled to withhold payments.

I understood that your loans were income contingent loans so unless you are self employed they are deducted directly from your salary.

If you are self employed I would suggest refusing to pay tax would be most unwise.

Ed-1

Niv wrote: »

Not understanding the repayment terms of your loan does notgive you the right to withhold payment. You may think you are going on acrusade for justice but ultimately it will just have an adverse effect on yourcredit rating and you will have to repay what you are due to pay regardless.

Income-contingent loans do not touch credit files regardless as they are very much a tax.

CLAPTON

Ed-1 wrote: »

Income-contingent loans do not touch credit files regardless as they are very much a tax.

That is so, however HMRC will take you to court and will bankrupt you if you refuse to pay tax and your future tax affairs will be scrutinised for the next 30 years.

This will have an adverse impact on your credit worthiness.