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Query regarding payments on pre-1998 student loans

IanRushFan
Posts: 3 Newbie

Hi all - I have a query regarding a couple of pre-1998 student loans I took out whilst at University and hope that someone has been through this process before.
Two of my three student loans were made between pre-1998. My first was 29/11/1996, the second was 13/11/1997.
If I am reading the Moneysaving Expert help pages correctly, these two loans will be wiped 25 years after the first payment of my final loan with them. According to Erudio (the company that purchased these loans off the government) my final loan date was 05/01/1999.
If I am reading the Moneysaving Expert help pages correctly, these two loans will be wiped 25 years after the first payment of my final loan with them. According to Erudio (the company that purchased these loans off the government) my final loan date was 05/01/1999.
Unfortunately I have never earnt enough money to initiate the payment of these loans, so have successfully been deferring each year. My understanding of the T&C's is that as long as my salary doesn't increase beyond the salary threshold before 05/01/2024, then these first two loans will automatically be wiped - is that correct? The third (and final) loan is post-1998 so I gather this would still be active as it is on different T&Cs.
Annoyingly, I have applied for a job that will provide an annual salary above the payment threshold. The interview is in early November, so if successful (big 'if') it's likely that I would be eligible to start making repayments on these two loans before I reach the 25-year anniversary.
My main question is - would I then be liable to pay back the entirety of the 2 full loan amounts (approx £7k combined) or just be expected to make payments until the loans reach this 25-year anniversary, where they would then be automatically wiped?
My main question is - would I then be liable to pay back the entirety of the 2 full loan amounts (approx £7k combined) or just be expected to make payments until the loans reach this 25-year anniversary, where they would then be automatically wiped?
Is anyone able to advise please? If you need any extra info, please let me know - thanks!
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Comments
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We've moved this to our board for student finance questionsOfficial MSE Forum Team member. Please use the 'report' button to alert us to problem posts, or email forumteam@moneysavingexpert.com0
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Once your salary exceeds the threshold you make payments of 9% of income above the threshold. Imagine the threshold was £25,000. If you earned £31,000 that would be £500 a month over the threshold and you would pay £45 a month towards your loan. There is no back dating of anything and the write off date remains unchanged.
Your threshold for deferment is £38,255.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
silvercar said:Once your salary exceeds the threshold you make payments of 9% of income above the threshold. Imagine the threshold was £25,000. If you earned £31,000 that would be £500 a month over the threshold and you would pay £45 a month towards your loan. There is no back dating of anything and the write off date remains unchanged.
Your threshold for deferment is £38,255.0 -
IanRushFan said:silvercar said:Once your salary exceeds the threshold you make payments of 9% of income above the threshold. Imagine the threshold was £25,000. If you earned £31,000 that would be £500 a month over the threshold and you would pay £45 a month towards your loan. There is no back dating of anything and the write off date remains unchanged.
Your threshold for deferment is £38,255.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
silvercar said:IanRushFan said:silvercar said:Once your salary exceeds the threshold you make payments of 9% of income above the threshold. Imagine the threshold was £25,000. If you earned £31,000 that would be £500 a month over the threshold and you would pay £45 a month towards your loan. There is no back dating of anything and the write off date remains unchanged.
Your threshold for deferment is £38,255.0 -
silvercar said:Once your salary exceeds the threshold you make payments of 9% of income above the threshold. Imagine the threshold was £25,000. If you earned £31,000 that would be £500 a month over the threshold and you would pay £45 a month towards your loan. There is no back dating of anything and the write off date remains unchanged.
Your threshold for deferment is £38,255.
Pre-98 loans are the mortgage-style ones. Unless you defer, you pay your total amount owing divided into 60 instalments. silvercar is confusing the repayment scheme with more recent loans, plan 2 I believe. There is no PAYE with these loans- I have four, and I also earn below the threshold.
All the loans are wiped 25 years from the date of the first instalment of the final loan. In my case my final pre-98 loan was taken out in Autumn 2000, because my course started in 1997. Linky (I'm assuming you were aged under 40 in your final year.)
Your final loan was taken out in Jan 1999 so they would all be wiped in Jan 2024 if that was the date of your first payment for that year. (Your loans are all pre-98 presuming you took them out for the same course.)
If you earn over the threshold, you'd make payments until Jan 24 and they then get wiped.They call me Dr Worm... I'm interested in things; I'm not a real doctor but I am a real worm.0 -
building_with_lego said:silvercar said:Once your salary exceeds the threshold you make payments of 9% of income above the threshold. Imagine the threshold was £25,000. If you earned £31,000 that would be £500 a month over the threshold and you would pay £45 a month towards your loan. There is no back dating of anything and the write off date remains unchanged.
Your threshold for deferment is £38,255.
Pre-98 loans are the mortgage-style ones. Unless you defer, you pay your total amount owing divided into 60 instalments. silvercar is confusing the repayment scheme with more recent loans, plan 2 I believe. There is no PAYE with these loans- I have four, and I also earn below the threshold.
All the loans are wiped 25 years from the date of the first instalment of the final loan. In my case my final pre-98 loan was taken out in Autumn 2000, because my course started in 1997. Linky (I'm assuming you were aged under 40 in your final year.)
Your final loan was taken out in Jan 1999 so they would all be wiped in Jan 2024 if that was the date of your first payment for that year. (Your loans are all pre-98 presuming you took them out for the same course.)
If you earn over the threshold, you'd make payments until Jan 24 and they then get wiped.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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