It's daft to pay off student loan

[Home77]

with inheritance when you are SAHM? friend says they did this...can't help thinking it is a shame as they could do with the money. they are in their 40s and surely student loans get wiped off after a certain number of years.

I would think having 40K in the bank with young children would be greater peace of mind.

Why should she? I avoided paying mine back for years and the bulk will still be written off.

No- I don't plan to pay any of it back. I have been deferring it for years and will keep doing so as won't be earning over the threshold.

We paid for ds to go to university, no loans at all.

Home77 You plan never to work then, or always be low waged? That's a waste of an education, and as the loan book is sold off, you may find that those who buy the debt will come after you.

I know I should be losing sleep over the morally wrong decision but quite frankly have far more to worry about.

I agree, @Home77 but people are strange

I think that you only need to be aware of the interest rate if you are a higher earner, about £40-£50k with decent pay rises, I believe that is about the threshold, though of course on MN that is not higher earnings anyway.

Hijacking thread here, sorry OP! Does anyone know how you find out after how many years a loan from a course starting in 2001 is written off? Or where I find out! Thanks :)

MN is so funny! - come after me. Yeah right. I'm on long term disability benefits. only have few years to go. Bit yeah they 'come after' folk like me to pay back student debt. Hmm. I'm so scared now.

Jesus, it's morally right. You took government money to study. You've spent the money. It doesn't matter whether you choose to work or have kids; you've still spent the money and you have an obligation to pay it back.

Anyone would be tbh, not just a SAHM!

After 30 years I think. Some stuff here on it.

www.moneyadviceservice.org.uk/en/articles/repaying-student-loans#when-will-my-student-loan-be-written-off

I think she's financially illiterate. What a stupid waste of an inheritance.

We take "government money" for all kinds of things, health, education, security...

Why should I pay back this particular lot? It's a graduate tax which I avoid as much as possible.

I got a degree told it would open doors to earning more, never quite reached the threshold despite being in graduate roles...

Perhaps if we hadn't been spun a line that we'd earn that money we wouldn't have gone to uni and got into debt (despite the loans).

I paid it all from my first paychecks because I hate having a loan and yeh I didn’t find it morally right to wait for it to be wiped off.

I like my financial freedom

This is just a general point. Surely if many many grads actively plan on not repaying their loans (ever), then the interest rates which are charged continue to climb and the fees continue to climb.....because at the end of the day the unis do not some people to repay the loans in order for the system to actually function? Does anyone know what happens when a loan debt is written off.....do the government just cough up?

I'm in the U. S. so probably a whole lot different, but can't they garnish your wages for repayment? I know here you have to sign a promissory note, and that is mention in the fine print.

Most people won't pay it off. Thought that was common knowledge?

www.google.co.uk/amp/s/www.independent.co.uk/student/graduates-three-quarters-never-pay-off-debt-loan-maintenance-grant-institute-for-fiscal-studies-a7824016.html%3famp

I don't agree that it's 'morally right' to pay it back ..... students shouldn't have to 'borrow' such an enormous amount in the first place to get an education.

We take "government money" for all kinds of things, health, education, security...

Health care is free at point of service, So is education. We pay for the police via council tax.

Why should I pay back this particular lot? It's a graduate tax which I avoid as much as possible.

It's not a graduate tax. It's a payment for a seervice you received years ago and should pay back.

Maybe they shouldn't have encouraged so many to go to University in the first place if they wanted all their money back, a lot of graduates will only ever earn £20-25k if they are lucky.

But you don’t have an obligation to pay it back while you’re not earning over the threshold kingfisherblue33, that’s the whole point.

purple do you not understand how student loans work?

It's not what is advised - it's more important to pay off other debt first as there is no guarantee you'll ever have to pay it all off. I've lost count of the number of parents i've had to talk out of remortgaging their houses to pay for their child's tuition fees.

This was also education, which should also be free at the point of service. Same as A-levels and GCSE's.