Plan 1 Repayments and when its written off

pjs493

I started my undergraduate degree in 2004 and ended in 2008. I therefore received student loan payments both before and after the '25 year write off' rule change that applied from 1 Sept 2006. I'm struggling to understand if all of my undergraduate loan payments are written off at the age of 65, or if the loan payments I received after 1 Sept 2006 are written off after 25 years from the time I became eligible to start repayments. The Plan 1 England, NI, and Wales rules apply to me.

When I log into government student repayment website it states:

How your loan impacts you

• Your student loan does not affect your credit rating.
• Your loan will be written off at a set time based on where you're from and when you took out the loan:
Students from England, Northern Ireland and Wales When you took out the loan When the loan is written off On or after 1 September 2006 25 years after you became eligible to repay On or before 31 August 2006 When you turn 65

I suppose the question hinges on whether my loan is considered to be taken out when I began my course in 2004 with payments made periodically throughout my studies, or if each payment is considered separately for the repayment rule purposes. Does anyone know if the payments I received after 1 Sept 2006 will be written off after 25 years? Or do the old rules apply and I'll be in repayment until I'm 65 for the whole amount?

I spent years after my undergraduate degree carrying out postgraduate studies, then got married and moved a lot with my husband's job which impacted my ability to work as we spent time overseas. Then we had children so I've not paid back much of my loans and can't see me making much in the way of payments in the next few years while the children are still little. Therefore, if some of it gets written off in 5 years or so, it would obviously be a big help in reducing my balance.

I found a blog on this website that specifies that it is the date that studies began that matters, but the government website using the term 'when you took out the loan', rather than specifically stating it depends on when studies began.

Ed-1

pjs493 said:

.

It's what's in law that matters.
A post-2006 student loan is written off 25 years following the date it became eligible to be repaid.

A post-2006 student loan is defined as a loan taken out by a borrower who takes out a loan—

(a) for the first time in respect of an academic year beginning on or after 1 September 2006 (regardless of if the course they are on started before then) but before 1st September 2012; or

(b) for a course starting on or after 1st September 2006 but before 1st September 2012.

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

You therefore do not have a post-2006 student loan as your first loan was taken out prior to 1st September 2006 and the course your loan was taken out for started before that date.

silvercar

Reads like you had 4 years of student loans, were they all for the same course or was there a 3 yr undergraduate degree and then extending the study to add a one year masters? If the latter, it may be that the last year would be post 2006. Otherwise it would be all pre-2006 rules. Student loans in those days had lower tuition fees and lower maintenance. It would be worth checking how much is outstanding.

pjs493

silvercar said:

Reads like you had 4 years of student loans, were they all for the same course or was there a 3 yr undergraduate degree and then extending the study to add a one year masters? If the latter, it may be that the last year would be post 2006. Otherwise it would be all pre-2006 rules. Student loans in those days had lower tuition fees and lower maintenance. It would be worth checking how much is outstanding.

It was a four year undergraduate course. Postgrad loans didn't exist back then in any case. 

I have about £30k outstanding from my undergraduate degree. So far I've only made a few payments when my income has gone over the threshold. This has only happened a few times due to time spent doing postgrad study (which has been funded from other sources), working relatively low paid jobs between studies early on, and then having to quit jobs due to moving frequently with my husband's job in the Armed Forces which resulted in spending 7 or 8 years overseas where I wasn't allowed to work at all because I didn't have a right to work in those countries. I have then spent the last four years either unemployed or working part time while I had children and devoted time to providing full time childcare to our children. Given that my youngest is still a baby, I can't see myself returning to full time employment (and therefore earning over the threshold again) for five or six years.

pjs493

Ed-1 said:

pjs493 said:

.

It's what's in law that matters.
A post-2006 student loan is written off 25 years following the date it became eligible to be repaid.

A post-2006 student loan is defined as a loan taken out by a borrower who takes out a loan—

(a) for the first time in respect of an academic year beginning on or after 1 September 2006 (regardless of if the course they are on started before then) but before 1st September 2012; or

(b) for a course starting on or after 1st September 2006 but before 1st September 2012.

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

You therefore do not have a post-2006 student loan as your first loan was taken out prior to 1st September 2006 and the course your loan was taken out for started before that date.

Thank you for this. I don't know why the government website couldn't be more specific and make it clear that it was based on the year I started my degree rather the time when I received the money.

kaMelo

I thought the Government website was pretty clear.

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

When Plan 1 loans get written off

When your Plan 1 loan gets written off depends on when you were paid the first loan for your course.

If you were paid the first loan on or after 1 September 2006

The loans for your course will be written off 25 years after the April you were first due to repay.

If you were paid the first loan before 1 September 2006

The loans for your course will be written off when you’re 65. 

pjs493

kaMelo said:

I thought the Government website was pretty clear.

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

When Plan 1 loans get written off

When your Plan 1 loan gets written off depends on when you were paid the first loan for your course.

If you were paid the first loan on or after 1 September 2006

The loans for your course will be written off 25 years after the April you were first due to repay.

If you were paid the first loan before 1 September 2006

The loans for your course will be written off when you’re 65. 

I quoted the government website myself in my initial post from my online portal when I logged in and looked at the repayments terms. I copied and pasted what was on my personal log in pages. 

My question was: is the loan considered as being taken out at the start of the course and payments made in instalments, or does each payment constitute a new loan? It could have been made clearer when I logged in that it is indeed the course start date that matters, not when the money was received.