student loan written off at 60?

outfoxed98

I took out a student loan in 2001 and since graduating have always been below the threshold for repayments. I've never paid anything off it so when will it be written off? I now have two small children so will only ever be returning to work part time for at least the next 10years.

MrsManda

outfoxed98 wrote: »

I took out a student loan in 2001 and since graduating have always been below the threshold for repayments. I've never paid anything off it so when will it be written off? I now have two small children so will only ever be returning to work part time for at least the next 10years.

25 years after it became eligible to be repaid (i.e. the April after you left university).
http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678571&_dad=portal&_schema=PORTAL#section3

MrsManda

Granville23 wrote: »

Hi Mrs manda
You quoted the following regarding loan cancellation

On this page http://www.moneysavingexpert.com/students/student-loans-repay

it says that your loan will be cancelled if your education start date is between 1990-1997 and under 40
So is it Education start date or date of last agreement. If it is agreement that is a bit unfair

If you took out loans between 1990 and 1997 then you'll have a mortgage style loan.

If you have a mortgage style loan and was under 40 when you took out your last loan agreement (e.g. if you started your final year September '97 you'll have signed your last loan agreement September '97) you will have your loans cancelled 25 years after you left university or when you reach 50.

If you were 40+ when you signed your last agreement then the loan is wiped at 60.

If you started your studies 1998 onwards you'd have an Income Contingent Loan which has different rules.
http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3866794&_dad=portal&_schema=PORTAL

I'm not sure why you think it's unfair? Hope this answers your question.

Andes

Have just spoken to Student Loans and they tell me that if the loan was taken out before 2005 (nothing about 1998) then it's not written off till 65, not 60 as previously suggested

(won't let me post link - but if you go to the Student Repayment site, Income Contingent, Plan 1, FAQs it explains it there)

Unfortunately. At 57 I thought I was nearly there ...

melancholly

Andes wrote: »

Have just spoken to Student Loans and they tell me that if the loan was taken out before 2005 (nothing about 1998) then it's not written off till 65, not 60 as previously suggested

(won't let me post link - but if you go to the Student Repayment site, Income Contingent, Plan 1, FAQs it explains it there)

Unfortunately. At 57 I thought I was nearly there ...

for what they call the 'income contingent loan', that's correct. for the 'mortgage style loan' - ie the loan for maintenance before the introduction of fees, it's still 60:

mortgage loan info (pre 1998)
http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867066&_dad=portal&_schema=PORTAL

income contingent (two types - before and after 2006/2007 year):
http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678571&_dad=portal&_schema=PORTAL

carrieog

Hi
I have just rung The Student Loan Co as I always understood I would have to wait till 60 to have my loan wiped, but Martin's pos seemed to say my loan should have been wiped 7 years ago when I was 50, as I first took it out when I was 39. However, the Company told me it is only wiped at 50 if you were over 40 when you LAST took it out, NOT when you first took it out as Martin says.

finbow wrote: »

The answer to this comes from Martin himself :money: on MSE.


"Loans pre-1998 that haven't ever been in arrears are wiped clean 25 years after your repayments started (even if payments have previously been defferred), if you reach the age of 50 (60 if you were over 40 when you started the loan), if you become permenantly unfit to work or if you die.

If post-1998 loans haven't been repaid, possibly due to consistently earning less than the payments threshold, once you reach 65 (for loans taken before September 2006) or 25 years from the first April of graduation (for loans after September 2006) debts are wiped clean. They are also cancelled if you become permenantly unfit to work"

HTH

Dunroamin

2sides2everystory wrote: »

It just goes to show with these Student Loan Co arrangements - there are more twists and turns down the line than a Greek Bailout.

.

The information on writing off pre 1998 loans is very clear on the SLC website - they can hardly be blamed that MSE got it wrong.

Dunroamin

2sides2everystory wrote: »

Yeah right and I am sure it was all very clear pre 1998 too ... Have you ever tried envisaging these conundra from a layperson's viewpoint ?

I am a layperson but I can also read. I simply looked on

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867066&_dad=portal&_schema=PORTAL

where it says

"Loan cancellation

Under certain circumstances we may cancel your liability to repay your loan. We will not cancel your liability to repay if you are behind on any repayments for a student loan.

For example, your loan may be cancelled if:

• You were under the age of 40 when your last agreement for a student loan was made and you reach the age of 50.
• You were aged 40 when your last agreement for a student loan was made and you reach the age of 60.
• Your last agreement for a student loan has been outstanding for no less than 25 years."

It ain't rocket science!

lawli56

I have just checked my student loan agreements. Am I right in assuming that the first 2 numbers of the loan account number of each loan indicate the year that the loan was taken out?

If that is so then all my loans are pre-98 and I would have been 41 at the time of the final loan. So I can have them written off when I reach 60 in just over 2 years time?

Dunroamin

lawli56 wrote: »

I have just checked my student loan agreements. Am I right in assuming that the first 2 numbers of the loan account number of each loan indicate the year that the loan was taken out?

If that is so then all my loans are pre-98 and I would have been 41 at the time of the final loan. So I can have them written off when I reach 60 in just over 2 years time?

I don't know about the loan number but, if your loans are pre 1998 (which presumably you know anyway) they will be written off when you reach 60, as long as repayments (if any) are up to date.