When will your student loan be written off?
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Time to accept that there is as much corruption in the UK as there is in most of the rest of the world, we just don't tend to do it with guns. At least if someone pulls a gun on you then you know what you are dealing with.
Keep an eye out for the ONS decision on changes to the accounting of student loans to be announced on Monday 17th December:
https://www.ons.gov.uk/news/statementsandletters/reviewofthetreatmentofstudentloansinthepublicsectorfinances
If the interest on student loans no longer counts as income to the government as it accrues (even though they probably will never actually receive it in repayments) then it could well blow up the incentive for there to be a high interest rate on the loans.
They've no plans to sell post-2012 loans though (currently). It's only the pre-2012 loans (with higher repayments and a lower interest rate) that are currently being sold.
And there's another incentive that could be blown up with the ONS decision - the incentive to sell, as currently selling the loans at a loss lowers the government's debt without affecting the deficit in any way. That could well be about to change too. If selling loans at a loss raises the deficit then there's little incentive to sell at all.
The ONS's announcements on this can't come soon enough.
I'm sorry if I'm repeating a question, but I've looked through the thread quite carefully to be sure.
My SLC loans were from 1997 and before. I am told that they will be written off after 25 years. Which should be in a few years time. I have 2 questions I cannot find the answers to. Please can anyone help. I've been successfully deferring them for the period and they have confirmed I have no arrears outstanding.
1. How do they get cancelled? Do the SLC or Thesis automatically cancel them? Or do you have to apply or go through a process or produce any further evidence etc for them to finally decide to cancel them?
2. They say they may not cancel them if there is any "breach of the loan agreement". Surely, if there had been any breach I would know this already and they would have informed me? Or is it possble that at the very last moment they are likely to say "oh, in 2005 you breached the agreement by doing XYZ?"
Anyone know anything about the real situation of the above?
Thanks
I started a course (I have documents from student loans ) in 2005. I never took out a loan in 2005. I dropped out.
I then started a new course in 2006. I don't think I took a loan till 2007.
So is my debit written off after 25 years or when I am 65?
How do I find out?
Thanks
If you started after 1998 but before 1 September 2012, you're on Plan 1. More info on the SLC website.
My wife had student loans in 95-98 and has had them deferred ever since due to low earnings.
They are currently deferred to June 2020, and she turns 50 in May 2020.
As they are due to be 'written-off' next May, I was wondering how this happens? i.e. does she need to instigate the 'write-off', or is it automatic..?