Graduated in 2004 (Eng) - been ill and out of work since 2006

Cieran1982

During 2006-2024 I was on sickness benefit and unable to work due to a long-term illness diagnosed early 2006.

Since the beginning of this year my health improved after a change in meds/ lifestyle. I started working again in July part time (approx 12 hours a week) and I recently moved on to Universal Credit.

I'm in a lot of debt but I feel proud that I'm able to work again and I'm determined to make the most of this fresh start. However my student loan looms over me....

It is currently £14,000 and my most recent interest amount for the last year was nearly £800.
It was only £114 in 2022. I spoke to the student loans people a year ago to enquire about the interest being frozen or the debt being wiped out and they said categorically no.

This feels really unfair as I only worked for 18 months post-graduation and for the best part of two decades I didn't earn a penny. My degree was in Computer Science and my knowledge is outdated now - my new job is as a support worker for a neurodiverse theatre company so that degree isn't relevant to what I do now.

Are there any options for me to deal with this or get some help?

Voyager2002

How much are they actually asking you to pay each month?

DE_612183

when you say you were in reciept of sickness benefit - did that include any of these?:

• Personal Independence Payments
• Disability Living Allowance
• Industrial Injuries Benefit
• Severe Disablement Allowance

Of course if you don't go above the threshold it'll get written off when your 65 anyway - I presume that's in 24 years?

The fact that the degree is outdated doesn't mean anything really

Brie

I'll ask for this to be moved to the debt free board.

Cieran1982

Voyager2002 said:

How much are they actually asking you to pay each month?

So far nothing as I'm earning below the threshold (I think), but it's more about me trying to keep the amount down while I try to increase my hours and navigate being back in the workplace after so long.

Forgot to mention that I am a self-employed freelancer - don't know if that is of any relevance

DE_612183 said:

when you say you were in reciept of sickness benefit - did that include any of these?:

• Personal Independence Payments
• Disability Living Allowance
• Industrial Injuries Benefit
• Severe Disablement Allowance

Of course if you don't go above the threshold it'll get written off when your 65 anyway - I presume that's in 24 years?

The fact that the degree is outdated doesn't mean anything really

None of those - I was originally on Incapacity Benefit which got changed to ESA (support group)

_Dolly_Rocker_

Student loans will not freeze any interest so the loan will continue to accrue interest until its paid in full or written off under their own T&Cs which I think is when you are 65. 

Midlander59

Just see it as a graduate tax . 

There have been many articles about the high rates of interest being charged which means that many students will never pay back their loans. £14000 is actually not that much these days. If you never earn above the bottom limit you will never need to pay anything back. Don’t look at it as a debt. 

ayupmeduck

Your student loan does not affect you in anyway, other than repayments once you start earning over a certain amount. You are not earning this so don't need to worry and can forget about it.  It is not considered when looking at credit applications. 

Kat78MFW

What type of student loan did you have? Is it one of the old mortgage style loans where you have to apply each year to defer repayment because you are earning under the threshold? If you are on that old type, it may wipe fairly soon. Well done on turning your health around and getting back into work. That is such a difficult thing to do after so many years out of the workforce.

kaMelo

Cieran1982 said:

Voyager2002 said:

How much are they actually asking you to pay each month?

So far nothing as I'm earning below the threshold (I think), but it's more about me trying to keep the amount down while I try to increase my hours and navigate being back in the workplace after so long.

Forgot to mention that I am a self-employed freelancer - don't know if that is of any relevance

DE_612183 said:

when you say you were in reciept of sickness benefit - did that include any of these?:

• Personal Independence Payments
• Disability Living Allowance
• Industrial Injuries Benefit
• Severe Disablement Allowance

Of course if you don't go above the threshold it'll get written off when your 65 anyway - I presume that's in 24 years?

The fact that the degree is outdated doesn't mean anything really

None of those - I was originally on Incapacity Benefit which got changed to ESA (support group)

Yes, being self employed is very relevant. As well as earned income from working they also include unearned income such as interest on savings, dividend payments, rental income etc. when calculating your total earnings upon which any student loan repayments are due.
You do have a £2000 annual allowance of unearned income, so if your total unearned income is below £2000 then nothing is added to your earnings, however unearned income of £2000 or more and the entire amount of unearned income is added to your earned income and student loan repayments are calculated on the sum total of both.