Mortgage Style Loans

craigers

I'm in Scotland. I have 5 mortgage style student loans, obtained each year from 1996-2000. The government sold these off, the 96-98 loans to lender1 and the 99-00 to lender2. I am currently making repayments but later this year they should be considered for write off as the last loan will have been issued 25 years previously. I have already paid off the 99-00 loans.

I was reading the legislation and it struck me that my outstanding loans should have already been written off, or it is my interpretation of the language anyway.

S12 of the act states the lender will cancel liability to repay the loan if the lender

(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.

The key here is the word outstanding. My interpretation is that as my 2000 (and 1999) loan is paid off, they cannot by definition be outstanding. The last outstanding agreement is the one obtained in 1998, and thus should already be considered for cancellation in 2023.

I contacted lender1 and asked what their interpretation was. They stated that as lender2 had notified them of the 99-00 agreements, they would only consider write off of the 96-98 agreements on the 25th anniversary of the issuing of the 2000 agreement later this year.

Has anyone had a similar situation or aware of such?

TIA

Ed-1

craigers said:

I'm in Scotland. I have 5 mortgage style student loans, obtained each year from 1996-2000. The government sold these off, the 96-98 loans to lender1 and the 99-00 to lender2. I am currently making repayments but later this year they should be considered for write off as the last loan will have been issued 25 years previously. I have already paid off the 99-00 loans.

I was reading the legislation and it struck me that my outstanding loans should have already been written off, or it is my interpretation of the language anyway.

S12 of the act states the lender will cancel liability to repay the loan if the lender

(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.

The key here is the word outstanding. My interpretation is that as my 2000 (and 1999) loan is paid off, they cannot by definition be outstanding. The last outstanding agreement is the one obtained in 1998, and thus should already be considered for cancellation in 2023.

I contacted lender1 and asked what their interpretation was. They stated that as lender2 had notified them of the 99-00 agreements, they would only consider write off of the 96-98 agreements on the 25th anniversary of the issuing of the 2000 agreement later this year.

Has anyone had a similar situation or aware of such?

TIA

The last agreement for a student loan (under the mortgage-style legislation) is fixed as the 99-00 loan and this has to have been outstanding for not less than 25 years. It doesn't matter if that particular loan is paid off or not. The agreement for that loan needs to reach 25 years old for any of the loans to be wiped.