Paying off new style student loans when I am 76? Anyone else?

[WhatIfIHadnt]

I am 42 and about to start a 3 year degree. The student loan system says you must repay the loans for 30 years following the April of graduation.

This means I will be paying off the loan until I am 76.

How would this work? Would they draw it out of my pension?

Is anyone else in this situation? Perhaps stupidly, I imagined it was "30 years or until you reach state pensionable age" - but it isn't!

Student loan repayments are based on income, so your pension income would have to be above £25k plus quite a lot of inflation adjustment for any payment to be due.

As to whether they would take it out of a pension income, I don't know, I don't see why not and if you did have more than one pension income that meant that payments were due, you'd probably have to repay via self assessment, as the system wouldn't otherwise recognise what the payment shold be if your income was £8k pa state pension plus £22k pa private pension.

It used to be until you paid it off or got to X age, whichever is sooner. Has that been removed from the proposed loans?

Is your pension likely to be more than £25k? Lucky you if so! Yes they will take it out of your pension in that case.

The loan system is that you are required to keep paying back your loans for 30 years following the April after graduation provided you meet certain requirements. One of these is that you earn a minimum of £25k per year before tax. If you are retired and not working (assuming your pension is below this) then you won't.