Can you challenge when a plan 1 student loan write off?

7he_3nigma

I have a plan 1 student loan, which i thought would be written off next year but have discovered that because i graduated in 2001, it wont write off until i'm 65, which seems particularly harsh/inconsistent with other later plan 1 loans as they end after 25 years and other plans at 30 years.

Is there anyway to challenge this or query why earlier plan 1 loans write off after 25 years and others at 65 (which equates to 43+ years)?

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/6673852/can-you-challenge-when-a-plan-1-student-loan-write-off

The "why" is already publicly known, but essentially it is the contract you signed up to.

There is no option to challenge it, I mean if you had a spare £50k you could go for a judicial review, but that would not actually get you anywhere.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6673852/can-you-challenge-when-a-plan-1-student-loan-write-off

Why should a loan be written off at all?

The rules for the loans are set by the Department of Education so if you want a change you would write to the relevant MP/devolved parliament depending on which country the loan came from.

When it changed to 25 years is also when the fees for going to university also changed so yes you have to pay it off up to 65 but you are paying off £1k per year at uni whereas those with the 25 years of loan were paying off £3k per year. So those who never get a large salary are probably better off under the new system as the debt is written off rather than paid, for the majority who do actually pay off their loan then being in the later years will have paid much more because the fees were higher.

The change came with the Higher Education Act 2004 which was intended to make students pay more of their own tuition costs hence increased the fees, changed the loan and reduced the grants.

itsthelittlethings

https://forums.moneysavingexpert.com/discussion/comment/82047562#Comment_82047562

I paid 3k a year and I think mine is written off at 65.

silvercar

Is there much outstanding? Are you earning enough to make repayments?

MillQueen

Sadly, it’s unlikely you would be able to challenge it, as all under that loan system at that time will be the same. You have my empathy though, as they are such a rip off aren’t they. It must have been really discouraging to find out it keeps going.