student loans - wiped after 30 years?

jellybean87_2

I am thinking about uni, so looking into student loans.

The info I have read say that after 30years the debt (or remaining debt) will be wiped. If I sign a loan agreement with this as a term, is there any way it can be changed if the loan gets sold on to another company?

AnotherJoe

No there is not.

[Deleted User]

It wouldn't be the first time they have "changed" the rules

PeacefulWaters

AnotherJoe wrote: »

No there is not.

Well, there shouldn't be.

AnotherJoe

venison wrote: »

It wouldn't be the first time they have "changed" the rules

It would be in the context of how the OP asked, because selling the loan could not affect its conditions. It would require legislation from government rather than selling the loan to affect any change. This is possible but I suspect the current retrospective change going through will be successfully challenged. .time will tell.

So OP your question should have been "could government change the rules" not "could selling the loan change the rules". Answer is yes and no in that order.

OP what are you looking to study that's got such a poor payback you don't expect to be claiming for thirty years ?

Ed-1

AnotherJoe wrote: »

It would be in the context of how the OP asked, because selling the loan could not affect its conditions. It would require legislation from government rather than selling the loan to affect any change. This is possible but I suspect the current retrospective change going through will be successfully challenged. .time will tell.

Not in a million years will the government change their mind on freezing the repayment threshold - there's no retrospective amendment even needed as the threshold is fixed in the regulations. They just are deciding not to implement the Lib Dems' intention. Uprating the threshold now would mean (a) the loans are not financially sustainable and (b) not financially workable as the new postgraduate loans are just being introduced with the same threshold which would also need to be uprated if the undergraduate threshold was not frozen.

Any intention to change the threshold needs to be communicated to HMRC by April the year before the change according to the Collection of Student Loans Consultation Group minutes from February 2009 when the Labour government were intending to increase the £15,000 threshold in April 2010 by RPI (but ended up not doing so because RPI was negative which meant the threshold would have gone down):

Repayment Threshold increase
The proposal to increase the threshold in April 2010 has gone to Ministers but with the economic downturn there is no outcome as yet. There is also the concern that the threshold figure is based on the RPI figure. Liz Cunningham stressed the need for HMRC to know by April to allow them to make the necessary IT changes.

http://webarchive.nationalarchives.gov.uk/20101006145436/http://www.hmrc.gov.uk/consultations/esl-mins030209.htm