Student Loan Query

matbriars

To anyone who can help,

I have two questions regarding student loans:

I went to university for one academic year (2006/07) and was always told my student loan would get written off after 25 years. However, the Student Loans Company (SLC) recently told me that because I was granted my student loan in June 2006 (prior to the start of the academic year) my student loan does not get written off until I am 65 years old.

I checked this article (moneysavingexpert > students > student-loans-repay) and it's unclear from the table midway through if what I have been told is right or wrong. Can anyone clarify please?

I am also considering paying off the loan (whether that's the best option or not financially) because it was suggested to me that I might be able to agree a settlement if making a one-off payment (i.e. paying less than the balance). Can anyone confirm if this is correct?

Any sensible help given would be greatly appreciated!

amanda1024

Presumably Plan 1? So according to https://www.gov.uk/repaying-your-student-loan/when-your-student-loan-gets-written-off-or-cancelled the difference is whether you got paid the loan before 1 September 2006 (rather than the academic year more generally), so they were right about not until you’re 65. Unless you were ‘granted’ the loan at that point but not actually paid it until later.

No idea if there’s scope to agree a settlement.

silvercar

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

https://forums.moneysavingexpert.com/categories/student-money-saving

MSE_ForumTeam5

Moved as suggested

Ed-1

matbriars said:

To anyone who can help,

I have two questions regarding student loans:

I went to university for one academic year (2006/07) and was always told my student loan would get written off after 25 years. However, the Student Loans Company (SLC) recently told me that because I was granted my student loan in June 2006 (prior to the start of the academic year) my student loan does not get written off until I am 65 years old.

I checked this article (moneysavingexpert > students > student-loans-repay) and it's unclear from the table midway through if what I have been told is right or wrong. Can anyone clarify please?

I am also considering paying off the loan (whether that's the best option or not financially) because it was suggested to me that I might be able to agree a settlement if making a one-off payment (i.e. paying less than the balance). Can anyone confirm if this is correct?

Any sensible help given would be greatly appreciated!

(2) In this regulation “post-2006 student loan” means any student loan paid under the 2006 Support Regulations or the 2006 Welsh Regulations or any subsequent Regulations made by the Secretary of State or the Welsh Ministers (as the case may be) under section 22 of the 1998 Act and taken out by—

(a) a borrower who takes out a student loan for the first time in respect of an academic year beginning on or after 1 September 2006; or

(b) a borrower who takes out a student loan in respect of a course which satisfies the following conditions–

(i) it begins on or after 1 September 2006;

(ii) it is not an end-on course following on from a course which the borrower began before 1 September 2006; and

(iii) it is not one to which the borrower’s status as a student eligible for support under Regulations made under section 22 of the 1998 Act has been transferred from another course which the borrower began before 1 September 2006.

https://www.legislation.gov.uk/uksi/2009/470/regulation/19

matbriars

Thank you for the advice. I will revert to SLC and see what they say.