Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Does anyone know about "student loans" and has everyone paid theirs (Grad 11 years ago whoops!)

(27 Posts)
opinionsrus Wed 21-Feb-07 19:06:08

Well yes I graduated over 11 years ago and with one thing or another ie travel/work/buying house/kiddies etc etc have never got around to paying it and it seems silly as the current amount that you have to earn over is around £2200.

I was told it was repaid at age 40 if you never earned that amount now I am told it is 65.....anyone know about this..thanks!!!

catsmother Wed 21-Feb-07 19:26:20

I was under the impression that the debt stayed with for life - or at least until the end of your working life anyway. I've certainly never heard or read of the "40" rule, but would be very interested if there's a possibility that might apply as I am now 42 !

I graduated as a mature student almost 10 years ago and have only ever paid back a few instalments because my pay only briefly went over the threshold (I've been a SAHM with a part time job for the last 3 years). So much for graduates landing the best paid jobs eh ?

Jessajam Wed 21-Feb-07 19:28:15

Haven't they sent you an Annual Statement and an Annual 'Tell us how much you are earning now so we know if we can start taking some of it away from you' Form??

CountTo10 Wed 21-Feb-07 19:29:48

I've just kept deferring mine - I had no idea about any limit on it and write offs? You can volunteer to pay it off if that's what you mean - you don't have to be over the threshold to qualify for payment you just agree not to defer it and they will start taking payments

themaskedposter Wed 21-Feb-07 19:36:34

Mum and Dad ended up paying mine off (NZ one) as I scarpered over here and they were taking the minimum out of my standing account and it wasn't even covering the interest or something equally horrendous!!

sorry - nothing to help there ... just a confession really!

lemonaid Wed 21-Feb-07 19:42:52

I graduated ... umm ... 14 years ago. My vague recollection is that it lapsed after 50 years or when you died. I paid mine off even though I wasn't earning enough to have to as I wanted it out of the way -- at least, it turned out that I paid most of it off because they "lost" some of it on their computer system, so they sent me a stroppy letter a few years later over the last £15 or so.

dinny Wed 21-Feb-07 19:43:28

I still defer mine every year. how tragic!

redclover79 Wed 21-Feb-07 20:14:51

I know there was a threshold when I took mine out and that it seems to increase anually, don't think I will ever be in the position where I pay it off. I have however, paid back about 3 installments of £20 through my last job straight out of my pay packet.
One thing I remember being told by the student loan co is that if you pay it back early you still get to pay any interest you would have accrued paying it back normally...

opinionsrus Wed 21-Feb-07 20:22:53

Well I have deferrred every year since graduating as I have never earnt over £2200 (I wish).

I know that if you want you can just pay any amount you like per month if you cannot afford the full monthly amount. I think when we move it will just be paid in full if we change mortgage etc etc i just don't want it hanging around until I am 65. God thats your whole life!

I definitely know that the "word" was when i was at uni that it automatically cleared when you were 40 which would be more realistic really...obviously SLC are not going to make this public I wonder how you could find out?????? Only 6 years to go ha ha.

Indith Wed 21-Feb-07 20:34:42

Still adding to mine! Groaned at last statement, especially when remembered I still have another year to go.

No info to add, just feeling the pain.

Is it true if you go live abroad and don't tell them they clear it?

Creole Thu 22-Feb-07 12:35:48

Well, my friend is 45 and she's still paying.

IntergalacticDave Thu 22-Feb-07 12:38:31

I ahven't paid anything into mine yet.

DP has paid his off. He's 32.

itsmeNDaveP Thu 22-Feb-07 12:42:55

Why should the loan be cleared after x years if you haven't paid into it ?

You did borrow the money. How fair is that to people who DID pay theirs ? Should have just deferred endlessly until it was written off ? Who pays the 'write off' costs ?

itsmeNDaveP Thu 22-Feb-07 12:43:34

Sorry, that should've read "Should they have"

Songbird Thu 22-Feb-07 12:45:09

Two rumours I remember - it's written off after 20 years and also if you live abroad for at least 3 years. No idea if there's any truth in that. I paid some of mine off for a year or so until I got pregnant, then couldn't see the point if I didn't have to. It bugs me that I've got this debt just building up (in addition to all my other debt!) but I'm not in a position to pay it off.

tenbygirl Thu 22-Feb-07 17:52:02

I know someone who moved to Ireland straight after graduating and has never been back here. I believe her's has been written off, they certainly don't chase her for it.

I'm still deferring mine 10 years on.

shonaspurtle Thu 22-Feb-07 18:07:50

I graduated 11 years ago and am still paying mine off. Have never earned over the threshold for repayment but stupidly buried my head in the sand over debt a few years ago and didn't send back the deferral form - now have defaulted on the whole amount and no longer have the right to defer. idiot idiot idiot.

I'm so mad with myself as I'll probably never earn over the repayment threshold so could have deferred indefinitely if I hadn't been such an arse.

Still, it'll all be payed off in a year or so thank god. They are really evil when you do this btw - ironically I'm paying more back a month than if I was rich and just making the usually monthly installments. I suppose it's because they had to pay debt collectors to phone me hourly until I cracked.

shonaspurtle Thu 22-Feb-07 18:11:36

Oh and by the way - it doesn't get written off... dh (god, we're a hopeless pair when it comes to money) didn't let them know his forwarding address when he moved after graduating. They tracked him down six years later and he had to pay it back. Again, no chance of deferrment because he had defaulted although he too has never earned over the threshold.

They never stop, they never sleep. they'll getcha!

missmapp Thu 22-Feb-07 18:16:08

I paid mine off a few years ago and last month, 13 years after graduating, i got a letter trying to track down a uni friend of mine - so it seems they never stop looking. I just pretended i had no idea where she lives now, but im sure they will find her eventually

Gobbledigook Thu 22-Feb-07 18:32:18

I graduated 11 years ago as well.

My first job paid me enough that I wasn't exempt from paying it back, so I started paying straight away and paid it off yeeeears ago.

It was only about £800 though - I only got a small loan in my final year because I gave up my job so I could study and look after my boyfriend (he had cancer). The other years I had a job on top of being at uni.

Wheelybug Thu 22-Feb-07 18:36:05

Graduated 11 years ago too.

Have paid mine off - quite a while ago actually ..... Don't think it was loads though as it was still in the days when it wasn't that much IYSWIM.

tenbygirl Thu 22-Feb-07 18:37:34

Mines's over 4k now!

lazyline Thu 22-Feb-07 18:56:24

I don't think it's the case that it's just wiped out when you hit 40. I am prepared to be wrong, but I thought it was the case (when I was at college in 1999) that if you had not yet begun to pay it off at aged 40, due to your income always being below the threshold, it would be wiped.

llareggub Thu 22-Feb-07 19:15:15

I graduated in 1996 and paid off my loan a few years ago. AFAIK the loan continues after 40; age 55 rings a bell. There was a rumour that the loan was wiped if you became pregant before graduating but I thought it was an extreme way to get out of the loan.

My loan was about £3.5k. I really wish I hadn't taken it as I didn;t really need it = I wasted it on holidays and nights out.

tenbygirl Thu 22-Feb-07 19:52:29

Found this on the NUS SITE;

Repayment can be deferred if you are earning less than 85 per cent of the national average wage but
you must actively request this - it will not happen automatically if you are not earning more than that
amount. Deferment can be requested if you are earning less than £1897 before tax per month
(2004/05 figures; this should rise slightly in 2005/06).
If you are not in arrears to the SLC, liability to repay these loans can be cancelled in certain situations:
· if you reach the age of 50 (or 60 if you were aged 40 or more when you first took out a loan)
· if you become permanently unfit for work due to a disability
· if you die
· if you have not otherwise paid back the full amount of your loan 25 years after repayments start

Join the discussion

Registering is free, easy, and means you can join in the discussion, watch threads, get discounts, win prizes and lots more.

Register now »

Already registered? Log in with: