To not pay off my student loan (current SAHM) even though we can afford it?

[SwissSarah]

I got my degree 10 years ago and have about £10K to pay from my student loan. I never earned enough to pay back any of it pre kids (did low paid community work) and have been a SAHM for 5 years and plan to be for at least the next 5. I anticipate never working full time and probably doing lots of voluntary stuff in the community as that's what I love doing. (DH earns well so no pressure to earn myself)

My DH thinks we should pay it back as I borrowed it. I think that I am contributing massively to my local community and giving back in so many other ways and if I'm not earning enough then I shouldn't worry about not paying it back. What do you think??

I am amazed at the number of people who had the opportunity to go to university, then not get a job at the end that pays enough to pay back the loan.

Maternity? Children? Childcare costs?

Your DC are going to say similar things about how this generation took out loans with no intention of paying back. The country that they inherit will bear the brunt of your bad debts. Good luck with explaining that.

I suspect current DC will have more to say about bad debts caused by the reluctance of the government to ensure that their friends pay a sensible amount of tax.

What did the original paperwork say OP? From vague memories I am sure I was told 'don't worry you don't have to pay it back unless you earn £x, and if that doesn't happen within X years it will be written off'. I paid mine, and I agree that normally if you borrow something you are morally (and legally) obliged to pay it back. But this government loan that was created to replace a grant is very different. It was lent on the condition that you will only have to pat it back if you earn over a certain amount. You don't. So in my view there is no moral obligation. In fact if anything, there is a moral obligation to use the money to fund your children's education.

You may feel that your finances are now joint, that DH income = family income... BUT that isn't the case for tax purposes is it? Your DH doesn't get to take your lack of income into account when calculating his tax. Because the government scrapped that.

Luckylavender

How ridiculous. The OP would pay it back in taxes if she were to earn enough. Instead, she's chosen to be a SAHM to help her family. She doesn't have to pay it back, just because she's married someone who earns well doesn't mean she should have too.
I'm sure He pays taxes that enable lots of people access to university.

I'm in the same boat OP. I paid off some of it when I was working ft but have been working pt or sahm for the past 4 years. I'll probably never go back to work ft so I'll probably never pay it off through wages. We have savings but they are for doing up the house, nice holidays and rainy day funds. That student loan can die with me.

Such a right wing view that education=job=money. Education for education's sake.

I paid mine back as soon as I started earning, and had paid it off before I reached the threshold earrings.

I guess I'm just stupid, but it felt like the right thing to do morally.

I just defer mine each year & will prob never earn enough to pay it back.

@meganorks

Did your husband write the letter? I'm in the same situation and they want bank statements too.. it's a joint account with his (quite high) wages and both of our outgoings. I've ignored the letter as I really feel it's an invasion of DH privacy, he never signed up for a loan! It's making me feel anxious though...

OP - don't pay it! Not because you're 'contributing to society in other ways' but because you are following the terms of the loan!

It's so easy to be morally superior with other people's money.

Is it morally correct to pay for your healthcare costs if you can afford to? Maybe those who don't really need their state pension should forgo it?

You don't have a crystal ball OP, you might be able to afford it now, but unless your really very wealthy there's no guarantee that you won't need that money in the future - for your own children's education if nothing else!

I have similar amount of student loan and worked for 8years as anbarchitectural technologist. For 5 of those years we were in a recession where the construction sector was hit the hardest. I took a 10%pay cut to keep my job, with practises going out of business there was no other option. I decided to cut my losses and start a family just as salaries started to return to 2009 levels, and became a Sahm. (there were other reasons to leave, including inbred misogyny).
So theres an answer to those asking, what useless degree did I do that meant I wasn't earning enough.

The debt hasn't become due.

Obviously, you should pay it when/if it does become due, but if you have surplus income that you're trying to get rid of in the meantime, I would suggest investing it for your children's future.

Why would you pay it, it wasn't the terms of the loan, if you have excess money put it in a pension.

ChocoChou
Yes, he wrote it. But I thought it was bloody stupid though. Firstly, anyone could have written it really! But, like you say, nothing to bloody do with him! They have set out the the terms of the loan, and they take it directly if you are earning. So why make your bloody husband write a letter.
I don't remember showing any bank account details though.

Overuse of the word bloody

I wouldn't pay it. YANBU.

You pay it back. The key word is LOAN.
Is this for real?

You pay it back. The key word is LOAN.
Is this for real?

Exactly meganorks it annoys me. They can check with your NI number if you're working, if not just leave us alone
Bloody bloody bloody

Absolutely do not pay more than you are required to. The whole foundation of these types of loan is the only the people who actually monetarily benefitted from their education had to pay it back. That's built into the terms of the loan.

Paying back more than you have to by the terms of the contract is madness - and frankly you should never have had to take them out in the first place. They count for nothing, they don't even take account of them on credit reports. If you start earning again, have at it, otherwise just ignore them.

I've paid all mine back eventually - but I benefited from the higher earnings what I did brought me.

I've only got 7 years left on mine and it's cancelled. Even if I went full time I wouldn't be earning anywhere near enough to pay it back. It was very much sold to me as 'don't worry, you'll not likely need to pay it back unless you're earning loads'.

This thread has reminded me that deferal time is due next month.

Brilliant attitudes surfacing. People like you do not deserve a higher education.

I would stick to the rules and don't pay it off until you have to, you are sticking to the terms of the loan. Pay off other debts first or invest the same monthly amount.

Unless you've been given other financial advice? I don't know, will it dramatically affect future mortgage or similar? Probably not.

YANBU. I graduated in 1999 and have never earned enough to pay it back, and as I only work part-time and have health issues, I can't imagine that I will do. Is it 25 years until it gets written off? Not that long to go then!

There are clear terms and conditions on student loans and if you don't earn the min amount to pay it back you do not need to pay it back. I'm not sure that some posters on here understand that student loans are very different to ordinary loans. I have paid back one in full (second degree-different terms to first loan) but have one from my first degree I have never paid back (and never will as it will be 25 years and then cancelled). Household income means we could repay but my income means I don't have to. It is my loan and so based on my income. Don't pay it back unless you a) meet the terms or b) want to.