Honour Student Loans - '...cancelled and no further payments are due.'

Sponge · 20 January 2021 at 7:01PM

I've recently received a letter from Honour Student Loans (HSL) telling me that under section 8 of my loan agreement my loan has now been cancelled and no further payments are due. It's a mortgage style loan from University studies 92-96. There were four loans in total and the letter references them as 'Pack Numbers' under the heading of one 'Account Number'. But it only refers to cancelling a loan - singular, not loans - plural.

I was expecting to have to defer for one more year before I reached the write-off period of 25 years, but it would appear not. Most of what I've read states the clock starts when repayments are due to commence, i.e. the April after finishing your course. Which would mean 25yrs would be reached April 2022. Hence one more year of deferment. However, this letter would fit in with what Martin Lewis says here - 'Earlier of 25 years after your first payment of your last loan agreement (usually the start of your final year), or when you reach age 50'. My last loan would have been paid to me the start of my final year, so the end of 1995 - 25 yrs from then would be the end of 2020 and here we are!

Has anyone else received a similar letter? I'm looking for reassurance really. Reassurance that it has actually been written off, as opposed to cancelled, which so often has negative connotations and is closely followed by demands for payment of all loans. I've successfully deferred every year since completing my course in '96, so I see no reason why it should be the latter.

I've tried to find Section 8 of the loan T&Cs, but so far I have found no S8 that refers to cancellation. I'm reluctant to contact them, as keeping my distance and not 'poking the hornet's nest' has served me well so far.

Ex_Student · 7 October 2024 at 2:06PM

I received the same letter from Hounors Student Loans in 2023, stating that my student loans had been cancelled under section 8 in accordance with loan agreement.

Consequently I received email this year from Student Loans Company asking me to update my employment details so that Student Loan can be taken from salary directly, I responded quoting the above.