Writing of student loans - mortgage style

Returnee

I have mortgage style loans from 1997 onward.

The 1997 first one taken out matures in October this year. It is listed in my Erudio account as 4 separate loans, am I able to write off each loan individually or do I need to wait for all of them to reach 25 years?

kaMelo

These loans are viewed as a package rather than individual loans and assumes you completed your studies in one block, IE, there was no gap years in between.

If you were under 40 years of age when you took out any of your loan agreements they will be written off when the youngest loan has existed for 25 years or you reach 50 years of age, whichever comes first. If you were over 40  when you took out any loan agreements then the age is extended to 60.

This assumes the account is all present and correct with deferrals/payments due all up to date.
If an account is in default then the loans will never written off unless paid in full however, unlike the later "plan style loans", they do become statute barred.


Given your start date of 97, any gap years could make a big difference to how loans post Sep 98 are treated.

Returnee

Thank you for that. Presently the account is in a month of arrears as Erudio slowly goes through deferment paperwork. I'm monitoring the date to pay it by, but I expect from what I have read they are taking twice as long to confirm deferment. 

They went from telling me the first two years that it was due up, to the last two of not saying a word apart from a hard copy letter. 

I hope that April 2023 is the last time I have to be involved with them.