Student Loan Cancellation - Moving The Goal Posts?

AlexEB

Hello,

When I was given me my student loan between 1999 and 2002, I was told it was going to be wiped out after 25 years.

The current guidance is...

"If you started in 2005/06 or earlier, your student loan plan 1 will be written off when you reach 65 years old." 

Does anyone know when this was changed, because that seems unfair to change the term of a loan after someone has taken it out?

In the legislation it says:

12.  The lender will cancel the borrower’s liability to repay the loan if the borrower—

(a)dies,

(b)is not behind on any repayments under any agreement for a student loan and—

(i)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, or

(ii)was aged 40 or older when his last agreement for a student loan was made and he reaches the age of 60, or

(c)if the borrower can show the lender that he gets a disability related benefit and because of his disability is permanently unfit for work.

I can't post links on this forum, so the legislation is here:

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

Does anyone have any information on when it was changed to 65yo rather than 25 years?

Thanks,

Alex

Exodi

Sorry if I'm missing something -

You started your student loan in 1999? Do you have any evidence that when you took your student loan out in 1999, you were told it would be wiped out after 25 years?

AlexEB said:

that seems unfair to change the term of a loan after someone has taken it out?

I'd assume each set of rules were in place for loans issued at the time, I'd be suprised if any changes were made retroactively.

AlexEB said:

If you started in 2005/06 or earlier, your student loan plan 1 will be written off when you reach 65 years old." 

Does anyone know when this was changed?

If I had to guess, I'd say 2005/06.

https://www.gov.uk/repaying-your-student-loan/when-your-student-loan-gets-written-off-or-cancelled

Emmia

AlexEB said:

Hello,

When I was given me my student loan between 1999 and 2002, I was told it was going to be wiped out after 25 years.

The current guidance is...

"If you started in 2005/06 or earlier, your student loan plan 1 will be written off when you reach 65 years old." 

Does anyone know when this was changed, because that seems unfair to change the term of a loan after someone has taken it out?

In the legislation it says:

12.  The lender will cancel the borrower’s liability to repay the loan if the borrower—

(a)dies,

(b)is not behind on any repayments under any agreement for a student loan and—

(i)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, or

(ii)was aged 40 or older when his last agreement for a student loan was made and he reaches the age of 60, or

(c)if the borrower can show the lender that he gets a disability related benefit and because of his disability is permanently unfit for work.

I can't post links on this forum, so the legislation is here:

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

Does anyone have any information on when it was changed to 65yo rather than 25 years?

Thanks,

Alex

I had a student loan from 2000 - 2003, and I understood that the debt accrued had to be paid off. There wasn't a 25-year or whatever write-off period (or if there was, it was state retirement age). The interest amount on those loans was relatively low, and it wasn't that easy to rack up debts of 10's of £10,000's, as students now can. 

I think 25 years is for later loans. 

I owed £8.5k when I finished and paid it all back, with the last payment in 2012. 

silvercar

I'll ask the forum team to move this thread to the student board. 

kaMelo

AlexEB said:

Hello,

When I was given me my student loan between 1999 and 2002, I was told it was going to be wiped out after 25 years.

The current guidance is...

"If you started in 2005/06 or earlier, your student loan plan 1 will be written off when you reach 65 years old." 

Does anyone know when this was changed, because that seems unfair to change the term of a loan after someone has taken it out?

In the legislation it says:

12.  The lender will cancel the borrower’s liability to repay the loan if the borrower—

(a)dies,

(b)is not behind on any repayments under any agreement for a student loan and—

(i)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, or

(ii)was aged 40 or older when his last agreement for a student loan was made and he reaches the age of 60, or

(c)if the borrower can show the lender that he gets a disability related benefit and because of his disability is permanently unfit for work.

I can't post links on this forum, so the legislation is here:

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

Does anyone have any information on when it was changed to 65yo rather than 25 years?

Thanks,

Alex

The legislation to which you refer covers mortgage style loans, offered to anyone starting a course prior to September 1998.  The paragraph you quoted, paragraph 12, tells us this as only mortgage style loans had any reference to the age of the borrower being relevant to when repayments finish.


Anyone starting a course on or after September 1998 (up to September 2006) and taking student loans, such as yourself, were given income contingent plan 1 loans. These loans never had a repayment time limit other than an age related cancellation date of when the borrower reached 65 years of age, irrespective of how long that would be.
Plan 1 loan repayment terms where amended for students starting courses on or after September 2005 2006 when the age related cancellation term was changed to 25 years.

Unfortunately you fall within that seven year window between 1998 and 2005 2006. Although your loans where a fraction of what later students would borrow your repayment terms where less favourable (unless you where a very mature student)  But nothing has changed, the age related cancellation date was always when the borrower turned 65, these where the terms you agreed to when taking out the student loan. 

Ed-1

kaMelo said:

AlexEB said:

Hello,

When I was given me my student loan between 1999 and 2002, I was told it was going to be wiped out after 25 years.

The current guidance is...

"If you started in 2005/06 or earlier, your student loan plan 1 will be written off when you reach 65 years old." 

Does anyone know when this was changed, because that seems unfair to change the term of a loan after someone has taken it out?

In the legislation it says:

12.  The lender will cancel the borrower’s liability to repay the loan if the borrower—

(a)dies,

(b)is not behind on any repayments under any agreement for a student loan and—

(i)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, or

(ii)was aged 40 or older when his last agreement for a student loan was made and he reaches the age of 60, or

(c)if the borrower can show the lender that he gets a disability related benefit and because of his disability is permanently unfit for work.

I can't post links on this forum, so the legislation is here:

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

Does anyone have any information on when it was changed to 65yo rather than 25 years?

Thanks,

Alex

The legislation to which you refer covers mortgage style loans, offered to anyone starting a course prior to September 1998.  The paragraph you quoted, paragraph 12, tells us this as only mortgage style loans had any reference to the age of the borrower being relevant to when repayments finish.


Anyone starting a course on or after September 1998 (up to September 2005) and taking student loans, such as yourself, were given income contingent plan 1 loans. These loans never had a repayment time limit other than an age related cancellation date of when the borrower reached 65 years of age, irrespective of how long that would be.
Plan 1 loan repayment terms where amended for students starting courses on or after September 2005 when the age related cancellation term was changed to 25 years.

Unfortunately you fall within that seven year window between 1998 and 2005. Although your loans where a fraction of what later students would borrow your repayment terms where less favourable (unless you where a very mature student)  But nothing has changed, the age related cancellation date was always when the borrower turned 65, these where the terms you agreed to when taking out the student loan. 

*******2006

kaMelo

@Ed-1 Thanks for the correction, no idea why I put 2005.