Student Loan Confusion

Angedz

Hi! I was in a university in Wales between 1994-1998 and had an Honours Student Loan each year of my time here. I read on your forum that pre-98 loans are wiped after 25 years, which would make me 44 years old when the 25 years kicks in in 2019. However, the Honours Loans website says that a loan during this time will not be written off until I'm 50. Which is correct? Thanks :-)

fermi

The current and last cancellation regulations that apply to all the old mortgage style loans, no matter the years taken out, are here:

http://www.legislation.gov.uk/uksi/1998/211/schedule/2/paragraph/12/made

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.

HonorsSL can write what they like on their site, but it is those regulations that they must follow by law.