Is anyone else going to have a student loan until age 65 (Plan 1 pre 2006)?

[studentloanuntil65]

I have a Plan 1 student loan and had no idea that I’d have the debt till 65 when I took out the loan in 1998, at age 18.

I’ve never been a high earner and took time out of employment to look after our children due to the high cost of childcare and no family support.

The interest has snowballed, even while I was working, and I’m never going to clear it before I’m 65.

It feels very unfair when I’m seeing that people on the other loans have theirs wiped out after 25 or 30 years. I’m 46 and have already had this loan hanging over me for over 25 years.

I didn’t realise until seeing a BBC article this morning that other people on plan 1 (2006 onwards loans) get theirs wiped after 25 years! Mine would already have been wiped. And if I’d been a year older I’d have had a full grant as my parents were low earners.

No, I’m not having to pay it back, but it’s still a weight on my shoulders knowing that I owe it. When I became a SAHM they wrote to me and told me that my husband had to write a letter to them confirming that he was supporting me, with evidence via bank statements, which seemed a bit ridiculous as I’m supposed to pay the loan back via PAYE when I earn enough.

Is anyone else in the same boat with Plan 1?

I started in 2003 and have barely anything towards it, did another course in 2006 I don’t worry about it at all. I don’t earn enough for it to be taken from my wages, apart from the odd month when I have back pay or overtime. I’m in my 40s now and it will never be repaid. I thought we still had the 25 years rule though.

No, it was between £10-11k, I checked my documents after guessing - I graduated in 2001, it’s been a long time!

And as I said above, it’s not just the amount, it’s having it hanging over me for the reasons I’ve mentioned above. Having to deal with them until I’m 65. Having them request my husband writes to them to confirm he’s providing for me!

This post isn’t about other plans, and it isn’t in AIBU…

Me! EXACT same scenario as you.

I live in an area where wages aren't high. Before kids I barely earned over the threshold (yes I work in a job that uses my degree, we don't all live in London and get on grad schemes 🙄) then had a short break as a SAHM, no regrets, it was lovely.

Been working FT for years now, think I owe a about £15k and about £150 comes out of PAYE towards it each month, it's just there. I think they cancel it at 65 or death 😂

If I was a year older (1997 start) I would've been on the other system and not owe a penny.

@studentloanuntil65you would have had 3k a year and then probably 1k ish of tuition fees. It does seem unfair that a few years later it’s changed to 25 years write off but what can you do.

Yes but you couldn’t have been on this plan (Plan 1) pre 2006 - a small detail that makes all the difference.

It’s definitely 65, they can’t increase the age in line with retirement.

It’s a small price to pay for having gone to university for free though.

I had loans of about £20k and paid them all back plus interest, so no, I don’t have much sympathy for you having to deal with some letters and ringing them once a year until you’re 65.

@SleeplessRoadshow has the OP gone to uni for free?

I think I was entitled to more as my parents also didn't pay tuition fees as they didn’t earn enough.

Just checked and I owe £35k now, was £20k when finished uni I think on my student loans, it is going up every year due to the interest. 12k of it is the £3000 a year tuition fees as then they were £1200 I could save that working over the summer.
Though interest going from 1.5 to 4.1 isn’t helping!

Yes

If you borrow money, spend it and then never pay it back you’ve essentially had it for free, guessing that’s what PP means.

It sounds entirely reasonable to me, you sound like you haven't used the degree, you don't want 'competitiveness', you don't want to pay. I don't think people should have to pay to go to Uni but there should be an expectation to use your degree in some way, even if not directly.

I had 3k a year loan and my accommodation was 2.9k, luckily I found work around uni.

I may have misunderstood, but it read like she only makes loan repayments when she has overtime and then gets them refunded - so she’s I read it as though she’s not making repayments on the loan.

@modgepodgebut the OP didn’t say she never paid a penny back?

Nice.

I made it as clear as I could that I was looking for people in the same boat, but this is mn I guess.

@SleeplessRoadsMaybe I misunderstood, I thought the OP had paid some back in the past.

Is it the same for current grads, if you never work you never pay?

No, despite being part time for most of my 20s (had children young) maternity leave etc, I will have it paid off by 39. You have either had a very challenging set of circumstances or made some very bad financial/career decisions to have not paid off plan 1. There was barely any interest on it from 2008-2022 ish!

I couldn’t have predicted I wouldn’t have used it beforehand. I had no idea about careers while at school, it just wasn’t something that the school or my parents educated me about, and the internet wasn’t a thing back then!

@bcisagtwtI don’t think that’s true though as I have seen this a lot. It depends on how much you originally borrowed

Our uni specified that we shouldn’t work while studying that course - it was pretty much full time in lectures. I had just enough to pay for everything. I’m an introvert so didn’t have the typical student lifestyle - no going out/ drinking etc.

Yes, mine was just under 15k (maintenance loan only, I didn't have to pay tuition). I paid about two thirds of it off before having my children but not a lot since due to working part time or not at all.

Our loans are low interest compared to others' though. Basically it was supposed to be equivalent to inflation. So even though the figure on paper is more, the equivalent value compared to 1998 is roughly the same.

It's a bad system (DD1 has a similar situation as hers has mounted due to mat leaves and career breaks whereas DS has paid his off)
Having said that I think you are being a bit OTT in complaining it is hanging over you, etc. There are lots of people claiming to feel hard done by from all generations (think WASPI from mine, student loans from yours and young people who do have things very tough at the moment) but the country cannot afford to appease all so you just have to step up, take responsibility so you know what the figures are even if you are not paying back and it is mounting up then ignore it and get on with your life

Mines not gonna be paid off either! I'm a mum to a severely disabled child so not worked since he was born 17 years ago!!! Shit isn't it!!