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When will your student loan be written off? - Page 2

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When will your student loan be written off?

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  • Hi I went to University in 1994 and my final and third graduation was 2003. I took out 2 students loans, deferred until 2007, left the country, came back 2015. I have never earned enough to start paying them back and have been unemployed for 18 months, getting a total of £0.52 Per month JSA. What are my options? Thanks for any advice in advance. :cool:
  • Merlin's_BeardMerlin's_Beard Forumite
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    silvercar wrote: »
    Which would you prefer, the loan you have or a loan the size that more recent graduates have?

    Hmm... 6 years of uni, slightly higher than average salary...

    Plan 1 (pre2006): almost certainly going to have this wiped out at 65, giving me 40 years of repayment.

    Plan 2: would certainly have this wiped out 30 years after becoming eligible to repay (55 in my case)

    So... 10 less years of repaying for Plan 2.

    Let's say I earn a flat rate of £30,000 throughout my career and say that the current Plan 1 and newly announced plan 2 thresholds apply, because I'm not good at maths.

    Plan 1 I repay 9% of £30,000 - £17,775 a year, so £1100.25 a year.

    (2006 onwards graduates would be paying £27,506.25 as they only repay for 25 years)

    Plan 2 I repay 9% of £30,000 - £25,000 a year, or £450

    Over a lifetime:

    the Plan 1 loan costs me £44,010

    the Plan 2 loan costs me £13,500

    Obviously, this isn't totally accurate because everyone starts at a lower wage which rises (hopefully) and repayment thresholds change, but the big difference between a big plan 1 loan and a plan 2 loan still stands...

    so all things being equal, I'd take the plan 2 loan if given a choice. 10 years less of repaying, and a much reduced level of repayment each year sounds fab!
  • I hope someone can help me. Will my loan still be written off even though I have arrears?

    My loan is due to be written off this year, I have never earnt over the threshold and am currently on Income Support in respect of my disabled son.
    A year or so ago Honour Student Loans claimed I didn't send them enough documnetation even though I sent them what I always have (I sent them proof of Income Support but they wanted prrof or ALL my benefits). I therefore missed the deferment window so they applied £74.32 to my account.

    If I don't pay this £74.32 do I breach the terms of the loan so it won't be written off? What should I do?
  • fermifermi Forumite
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    Leesystar wrote: »
    I hope someone can help me. Will my loan still be written off even though I have arrears?

    My loan is due to be written off this year, I have never earnt over the threshold and am currently on Income Support in respect of my disabled son.
    A year or so ago Honour Student Loans claimed I didn't send them enough documnetation even though I sent them what I always have (I sent them proof of Income Support but they wanted prrof or ALL my benefits). I therefore missed the deferment window so they applied £74.32 to my account.

    If I don't pay this £74.32 do I breach the terms of the loan so it won't be written off? What should I do?

    If you are technically in arrears, they are not obligated to write the loan off.

    If you feel arrears were their fault, and should never have been applied, then you could make a formal complaint. Perhaps taking to the FOS if they will now take the case on.
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to [email protected]

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  • I started a degree in 1996, I had to leave before the end of the first year because of a very bad physical health problem, i needed regular long treatments and surgery, which meant i was not able to give the time to a degree course. After that i lost my confidence completely and never totally got my health back to where it was before. having not completed my degree and never having earned over the freshold of wages to pay it off, will my debt to student loans ever be written off? its been deferred ever since i left the course.
  • Let me get this right. I had loans in 96, 97 and 98 under the old style loans. I was born in 1970 so 50th is late 2020. Is this when my loans are written off?
  • fermifermi Forumite
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    Trimmtrab wrote: »
    Let me get this right. I had loans in 96, 97 and 98 under the old style loans. I was born in 1970 so 50th is late 2020. Is this when my loans are written off?

    You were under 40 when your last loan was made, so write-off is:

    " It'll be wiped whichever is earlier of 25 years after your first payment of your last loan agreement (usually the start of your final year), or when you reach 50."

    So should be 50 based on what you say.
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to [email protected]

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

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  • fermi wrote: »
    You were under 40 when your last loan was made, so write-off is:

    " It'll be wiped whichever is earlier of 25 years after your first payment of your last loan agreement (usually the start of your final year), or when you reach 50."

    So should be 50 based on what you say.


    Think I'll frame the write off letter or use it as kindling. Not decided yet.
  • C_MababejiveC_Mababejive Forumite
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    I think one of the issues with student loans is that the interest increases with RPI. HM Government has stipulated that it no longer thinks RPI is a proper and accurate measure of inflation so why arent they charging CPI on student loan?
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • Ed-1Ed-1 Forumite
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    I think one of the issues with student loans is that the interest increases with RPI. HM Government has stipulated that it no longer thinks RPI is a proper and accurate measure of inflation so why arent they charging CPI on student loan?

    The inflation measure in pre-1998 "mortgage-style" loans are fixed into contracts (governed by the Consumer Credit Act) and can't be changed.

    The inflation measure used in post-1998 "income-contingent" loans can be changed but the government have said they have no plans to change the terms of pre-2012 loans which are being sold off (and note the repayment threshold goes up quicker if it is uprated with RPI instead of CPI).

    With post-2012 loans, the government currently have no plans to sell these off and the terms of these loans are under review. However the government say they are continuing to use RPI as "it has always been used with student loans"!
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