Can Type 1 Student Loans become statute barred?

daninacan

I have a student loan from 2006 and it was being paid via PAYE when I was living in the UK. I've since moved overseas and I've made no payments, nor have I contacted the SLC for over 6 years now (however they've tried to contact me).

I know this would be the case for a regular debt, however I am unsure if Type 1 student loans are able to become statute barred or not.

Thanks for your help

sourcrates

Old style student loans are subject to the limitation act.


New style student loans are not.

daninacan

Plan 2 refers to a student loan taken out from September 2012 onwards, in England or Wales. Older loans and loans taken out in Scotland or Northern Ireland, are called plan 1 loans.

Am I correct in assuming an old style loan is a Plan 1 loan, which is simply a loan given out before September 2012.

daninacan

Nevermind I found out that new style loans are post 1998.

daninacan

After doing some research, I've also heard that  if you move abroad,a student loan becomes a commercial debt as its not based on income, its paid through a direct debit, this means it is covered under the limitations act.

However I've not actually declared I am overseas, so even if it is true, I am still unsure what the status would be.

DrEskimo

It's very unlikely that you can just go to another country, not declare it, and then ignore them for 6yrs in the hope it becomes barred.

They will take measures to chase you for payments and it's likely it will involve using debt collection agencies, penalties and even potentially prosecution.

daninacan

DrEskimo said:

It's very unlikely that you can just go to another country, not declare it, and then ignore them for 6yrs in the hope it becomes barred.

They will take measures to chase you for payments and it's likely it will involve using debt collection agencies, penalties and even potentially prosecution.

Except if you took your loan out before 1998, then it's fine of course.

It has been well over 6 years for me this stage, there is only a few more years until I hit the 25 year mark of it becoming written off anyway - so I am not going to do anything about it, it would just have been one less topic occupying the back of my mind.

DrEskimo

daninacan said:

DrEskimo said:

It's very unlikely that you can just go to another country, not declare it, and then ignore them for 6yrs in the hope it becomes barred.

They will take measures to chase you for payments and it's likely it will involve using debt collection agencies, penalties and even potentially prosecution.

Except if you took your loan out before 1998, then it's fine of course.

It has been well over 6 years for me this stage, there is only a few more years until I hit the 25 year mark of it becoming written off anyway - so I am not going to do anything about it, it would just have been one less topic occupying the back of my mind.

You said it's from 2006. You still have another 10yrs yet before it is written off. Not what I would define as a 'few'.

The write off is for any outstanding debt you have left to pay. I'm not so sure it applies to any arrears you should have paid, but have not. 

You may get lucky and they just write it off and don't chase you for another 10yrs, but you could also get yourself into more trouble if they start instructing debt collection agencies, increasing the debt and demanding all arrears in full. It's a risk you seem to want to take.

Do you plan to move back to the UK?