Pre 1998 Student Loans - have the SLC/Government changed the 25 year rule?

Jayhome

I began University in 1997 and graduated in 2000. I understood that when I took out the 3 loans then they would be written off after 25 years (so 2024) and that is what MSE website seems to suggest too. However, if you look at the SLC/UK Government website it makes no mention of the 25 year rule for pre 1998 loans and says that the debt will be written off when I reach 65 years old. At best that seems misleading and at worst unlawful? So my question is, have they changed the rules? If not how can they not give the full picture? Thanks.

Carrot007

Have not all the pre 98 loans been sold on?

Check with whoever owns the loan now.

But yes FAIK nothing has changed as they cannot change. You have the original terms right?

Jayhome

Thanks for your reply Carrot007. Ha, ha! I signed those things when I was 18, 19 and 20 - sorry to say I don't have the original paperwork now. Yes, they have been sold to Erudio and Thesis but neither website mentions the 25 year write off rule - funny that (well not funny, I'm livid about it actually).

Carrot007

Jayhome said:

Thanks for your reply Carrot007. Ha, ha! I signed those things when I was 18, 19 and 20 - sorry to say I don't have the original paperwork now. Yes, they have been sold to Erudio and Thesis but neither website mentions the 25 year write off rule - funny that (well not funny, I'm livid about it actually).

Well mine are with erudio (94 though 98) (and despite all the paranoia on here I have never had an issue with them, I think most people non co-operation caused their issues).

The way to see that it is coming to an end is if they send you letters offering a reduced payment of less they you would pay if you suddenly had to start paying tomorrow. Had a lot of them, ignore the lot as looking how the current job markets go, I doubt it will require any paying, unless they get to reduce the threshold (it could happen).

I have not looked at mine in ages (beyond the send 3 payslips once a year). As I recall was it no 25 years of when you are 50, whatever comes first or something.

I do probably have the original paperwork around somewhere. I am too muchof a hoarder. I did shred a lot when I moved 5 years ago, but knowing me just accounts that had been closed for years! And very old stuff of still open ones! Thankfully most stuff is files these days so easier to hoard!

Thinking about It yes I do belive they don;t try to remind people when it is coming to an end (except in the reduced letters), it will be somewhere but well hidden.

They cannot change the terms without your agreement anyway. That was said as much in the forms we signed way back!

jimbo6977

I think the 25 year rule counts from date of the last of that type of loan you took out. Also you have to have kept up to date with any payments due in the interim. 

sourcrates

Its all covered here -

https://www.legislation.gov.uk/uksi/1998/211/made

The relevant section is -
SCHEDULE 2 TERMS OF LOANS
PART I

Section 12 (B) part (I) says -

"The lender will cancel the borrower’s liability to repay the loan if the borrower was under the age of 40 when his last agreement for a student loan was made and he reaches the age of 50 or when the last agreement for a student loan has been outstanding for not less than 25 years, whichever is the sooner"

Jayhome

Thanks everyone, that looks encouraging.