Repayment of Old Student Loan 1997 Advice

johnd73

Looking for some help with student loans taken out in 1995. Both myself and my partner have messed up and were in arrears with our loan account when we passed the thirty years/turned 50.
As a result the loans have not been written off. Anything we can do? Neither of us earn over the threshold to have been repaying the loans. Do we now have to pay the loans off?
Any advice would be appreciated 
Regards
John

silvercar

I'm not that familiar with old style loans. Is it possible to calculate the arrears and then clear those and have the accounts written off?

How could you be in arrears if you never earned over the threshold?

Have the loans been sold on, if so then who now operates them? their website may offer clues.

amcg100

If you were under threshold you would need to apply for exemption every year, otherwise the account would fall into arrears.

johnd73

Thanks for the comments. Correct, by not applying for exemption each year we went into arrears. Will contact them and see if by paying off the arrears the actual loan can be written off.

kaMelo

The problem you've got is that by failing to defer the loan administrator expects repayment. By failing to do either, defer or repay, the loan agreement is defaulted, once defaulted the loan agreement is cancelled, the full amount becomes repayable and will never be written off. 
That is not the whole story though, these type of student loans are also subject to the CCA and can become statute barred.in the correct circumstances.
The first questions would be who is administering the loan and when was the last time you acknowledged the loan? (for the avoidance of doubt, deferring is acknowledging the loan.)

johnd73

Thanks for the replies. Currently paying a token £2 a month to each loan. I imagine that prevents them ever becoming statute barred, and will remain repayable and be taken out of any future estate on our passing?

silvercar

johnd73 said:

Thanks for the replies. Currently paying a token £2 a month to each loan. I imagine that prevents them ever becoming statute barred, and will remain repayable and be taken out of any future estate on our passing?

Why don't you make contact with them and ask what you can do. Shame that they are still ongoing if you can sort out the late deferment issue.