Student Loan if you die

lolaleigh

I am thinking of going to University to re-train to become a Primary School Teacher. At the end of the three years I will have accrued debt in the region of £36,000.

I will be 42 when I compete the degree and I am concerned that given my age, if I was to pass away at.. say 62 and hadn't cleared this debt - would the remainder come out of any savings I had?

I know student debt is not the same as a standard loan or debt and need to be sure what the situation would be. It would be practically pointless doing the degree, if it means I would leave my only child with zero inheritance. The whole point of doing it is to get a good teaching job so that I can build savings for her when I'm gone!

Does anyone have any experience with student loans?

Thanks

[Deleted User]

http://www.slc.co.uk/services/loan-repayment/loan-cancellation.aspx

lolaleigh

Thank you! It's so frustrating, I actually read through that link before posting on here, but stopped at:

'Your student loan is cancelled 30 years after you become eligible to repay'.

Immediately thinking that I might not last 30 years, after the loan is taken out and then rushed here to ask what it would mean for me!

I will just have to pray that they don't decide to change the rules retrospectively, which I understand they are able to do.

Thanks so much for your quick reply.

ReadingTim

If you're only thinking of becoming a teacher to provide an inheritance for your daughter then I really don't think it's the career for you: the pay really isn't that good for what's expected of you, unless you really love children, giving the gift of knowledge in general and your subject in particular, not to mention endless bureaucracy, lesson plans, national curriculum's, staff room politics, lack of parental respect, etc... the list goes on.

Besides, you'll be dead and your kid needs to learn to make her own way in the world.

lolaleigh

Hi ReadingTim,

I appreciate my post may have made it sound as though the inheritance was the sole reason. It's actually much deeper than that, a life time ambition in fact (even with all the negatives!).

Yes, the salary is not fantastic, but there is room to progress within the payscale. Unfortunately in my current career path I have hit a glass ceiling and significant salary growth isn't a possibility. It was this that I was referring to: the ability to actually earn more, and thus save more.

Personally, I think if you can leave your children as much as possible it will absolutely give them a leg up in life. I have seen first hand, the difference between my friends who have received inheritances (usually from Grandparents) and those that haven't. (Especially living in the southeast, with property prices/deposits being astronomical). That's just my own observations and opinion though. To each his own!

Thanks for your reply.

ReadingTim

Yes, everyone wants the best for their family, and you're right: especially in the South East of England getting on the property ladder without the bank of Mum & Dad and a wealthy and dead relative or two is increasingly difficult. Unfortunately, unless you're hit by a bus, the chances of getting to die wealthy are slim if you need care in your old age - the state won't fit the bill if you can - reckon you'll be fit and healthy until you breathe your last?!?

Flippancy aside, if you want to be a teacher - go for it rather than overthinking what'll happen to the loan should the worst happen....life's too short anyway!

lolaleigh

Your 'flippancy' made me smile. Of course you're absolutely right.

I'm going to go for it!