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Student loan interest when income drops
My wife has recently stopped earning (made redundant before maternity leave, then decided not to return to employment, and stay home to look after our son).
We have informed SLC that she is no longer earning, so will not be repaying her loan for the foreseeable future. However, all information surrounding what happens when you stop repaying due to reduced earnings, redundancy, or voluntary termination of employment is incredibly sketchy/non-existent. My question is: now that she has temporarily stopped repaying, does the interest keep accruing? My assumption is yes, which will naturally mean that the loan keeps growing until she either returns to work, or it is written off after 25 years (pre-2012 repayment plan 1).
Does anyone know the answer; does interest keep accruing even whilst you are not repaying?
We have informed SLC that she is no longer earning, so will not be repaying her loan for the foreseeable future. However, all information surrounding what happens when you stop repaying due to reduced earnings, redundancy, or voluntary termination of employment is incredibly sketchy/non-existent. My question is: now that she has temporarily stopped repaying, does the interest keep accruing? My assumption is yes, which will naturally mean that the loan keeps growing until she either returns to work, or it is written off after 25 years (pre-2012 repayment plan 1).
Does anyone know the answer; does interest keep accruing even whilst you are not repaying?
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Comments
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My wife has recently stopped earning (made redundant before maternity leave, then decided not to return to employment, and stay home to look after our son).
We have informed SLC that she is no longer earning, so will not be repaying her loan for the foreseeable future. However, all information surrounding what happens when you stop repaying due to reduced earnings, redundancy, or voluntary termination of employment is incredibly sketchy/non-existent. My question is: now that she has temporarily stopped repaying, does the interest keep accruing? My assumption is yes, which will naturally mean that the loan keeps growing until she either returns to work, or it is written off after 25 years (pre-2012 repayment plan 1).
Does anyone know the answer; does interest keep accruing even whilst you are not repaying?
yes the interest keeps being applied in the same way, irrespective of a persons circumstances0 -
The interest is still applied as the loan itself is solely linked to your earnings0
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