Student loan cancellation

We were just pondering something at work - and this doesn't even apply to me before anyone starts having a go about "bl00dy students" etc!

 

On the '1998 onwards' system, you take out a student loan which you start repaying once you earn over £15,000 p.a....

 

We all seem to remember that when we were at school, the teacher said that if you didn't earn as much as £15k for 20yrs after your course had finished, then the loan would be cancelled forever.

 

(but we didn't take much notice of that clause at the time because, as teenagers who knew EVERYTHING, we were gonna be mega loaded millionaires and rulers of the Universe by the time we were 25, so it was irrelevant )

 

Does anyone know if this is true? I can't find this mentioned anywhere on the web.

I believe that any outstanding balance is written off when you reach 50.

I can imagine them changing that rule, especially if they move the retiring age to 70 like some are talking about.

I can imagine them changing that rule, especially if they move the retiring age to 70 like some are talking about.

 

Perhaps so. On the other hand, it shouldn't affect anyone greatly; if you are earning 85% of the median national average wage, then you should be able to afford the repayments easily. If you are not, then you don't have to make them.

To be honest if after University you still don't earn £15000 p.a. then you really must have wasted your time.

 

Alternatively you could just be self employed and manage to avoid all sorts of unpleasant deductions from your salary.

To be honest if after University you still don't earn £15000 p.a. then you really must have wasted your time.

 

Alternatively you could just be self employed and manage to avoid all sorts of unpleasant deductions from your salary.

 

Not necessarily, if you look at the posts the other week about there being no jobs for teachers.

I thought if you haven't paid it off by the time you reach retirement age it will be cleared.. I also thought if you lived abroad for 3 years it got cleared..

Not necessarily, if you look at the posts the other week about there being no jobs for teachers.

 

If there are no teaching jobs then get a job doing something else surely?

 

The minimum wage on a 37.5hr week comes to £11,173 so if you have been working for few years there is no reason not to be on at least 15k whether you have a degree or not.

".......

In England, Scotland and Wales, if you entered higher education before 1 September 2006, and have already taken out a student loan for that period of study, the SLC will cancel your loan plus any interest:

• when you reach the age of 65;

• if you die before you pay the loan off; or

• if you become permanently disabled and are registered as being unfit for work.

 

In England and Wales, if you entered higher education after 1 September 2006, or if this is the first time you have taken out a student loan for your current period of study, the SLC will cancel your loan plus any interest:

• 25 years after the April when you first became responsible for paying back the loan (rather than when you reach the age of 65);

• if you die before you pay the loan off; or

• if you become permanently disabled and are registered as being unfit for work.

 

In Scotland, these conditions apply but your loan, plus any interest, will not be cancelled until 35 years after the April when you first became responsible for repaying the loan.

........."

 

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@educ/documents/digitalasset/dg_174310.pdf

To be honest if after University you still don't earn £15000 p.a. then you really must have wasted your time.

 

Alternatively you could just be self employed and manage to avoid all sorts of unpleasant deductions from your salary.

I think in this case my colleague was wondering about his partner (who is the mother of his children) and so only works part time.

http://news.bbc.co.uk/2/hi/uk_news/education/3013272.stm

 

BBC says it get's dropped after 25 years after finshing course.

".......

In England, Scotland and Wales, if you entered higher education before 1 September 2006, and have already taken out a student loan for that period of study, the SLC will cancel your loan plus any interest:

• when you reach the age of 65;

• if you die before you pay the loan off; or

• if you become permanently disabled and are registered as being unfit for work.

 

In England and Wales, if you entered higher education after 1 September 2006, or if this is the first time you have taken out a student loan for your current period of study, the SLC will cancel your loan plus any interest:

• 25 years after the April when you first became responsible for paying back the loan (rather than when you reach the age of 65);

• if you die before you pay the loan off; or

• if you become permanently disabled and are registered as being unfit for work.

 

In Scotland, these conditions apply but your loan, plus any interest, will not be cancelled until 35 years after the April when you first became responsible for repaying the loan.

........."

 

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@educ/documents/digitalasset/dg_174310.pdf

 

Thanks for that info cgksheff

Thats far more detail than I found when I googled