Is my VERY OLD student loan still active?

Chapuys

Enterprise_1701C wrote: »

If the OP is so broke then how are they even considering buying their council house?

I thought it would be obvious.

Student loans you pay 9% of your wage OVER the first £21,000 per year (modern loans). Older loans had a higher repayment threshold, I think £29,000 per year. I earn £30,000 per year and only pay £91 per month off mine.

The right to buy can then give up to 70% off a property. Use my area as an example. The average house price is £82,000. If he was a tenant in 2000 (when he moved away from the student loans reach) until now - 17 years - the Right to Buy will be:

Your Right to Buy discount percentage could be 47%
Your Right to Buy discount value could be £38,865
The cost of your property after the Right to Buy discount could be £43,827

If they wait for 30 years its:

Your Right to Buy discount percentage could be 60%
Your Right to Buy discount value could be £49,615
The cost of your property after the Right to Buy discount could be £33,077

If they waits the full 40 years it will be:

Your Right to Buy discount percentage could be 70%
Your Right to Buy discount value could be £57,884
The cost of your property after the Right to Buy discount could be £24,808

That is how someone on a low income could afford their Right to Buy.

Ed-1

Chapuys wrote: »

Older loans had a higher repayment threshold, I think £29,000 per year. I earn £30,000 per year and only pay £91 per month off mine.

Don't you mean a lower repayment threshold?

Repayment threshold is currently £17,495 (rising to £17,775 in April 2017) for loans for courses starting 1998-2011.

Deferment threshold for pre-1998 loans was much higher.

Chapuys

Ed-1 wrote: »

Don't you mean a lower repayment threshold?

Repayment threshold is currently £17,495 (rising to £17,775 in April 2017) for loans for courses starting 1998-2011.

Deferment threshold for pre-1998 loans was much higher.

The thread starter left university in 1997 so therefore has an old mortgage style loan which has a higher repayment threshold than today so a deferment can be applied for if you do not meet it.

The Department for Education (DfE) has confirmed to Erudio Student Loans that from 1 September 2016 to 31 August 2017 the new deferment threshold for mortgage-style student loans will be a gross annual income of £29,126 (equivalent to £2,427.17 per month). The new interest rate for the same period will be 1.6%.

I do personally have a lower repayment threshold than the thread starter as I left university in 2007.

Ed-1

Chapuys wrote: »

The thread starter left university in 1997 so therefore has an old mortgage style loan which has a higher repayment threshold than today so a deferment can be applied for if you do not meet it.


I do personally have a lower repayment threshold than the thread starter as I left university in 2007.

Yes, deferment/repayment threshold was higher for mortgage-style loans as it's a cliff-edge threshold: once it's crossed it doesn't matter by how much the repayments are the same.

With ICR loans it does matter by how much it's crossed:

April 2017 repayment thresholds for ICR loans are:

£17,775 for 1998-2011 loans
£21,000 for 2012+ loans