[Help] Student loans

[Garry Nelson's Left Foot]

NSC I think I need your help.

I got a letter from the students loan company today requesting information on my working situation. It says that they need this info even if I'm living overseas.

Now, I graduated uni in 2001. When I took the loan I was told that if I lived overseas I didn't have to pay and after 20 years it would become invalid/null(if thats the right term - I wouldn't have to pay it).

I've lived overseas for 20 years. Before I left I told them that I was moving overseas and asked what i should do about my loan. They said nothing, just tell them when I move back. So, I've spent the last 20 years not too worried about it as I've been overseas. It's also been over 20 years since I left uni so based off my previous knowledge it should now be null and void.

However, I can't find anything online that backs that up. What I can find is if you took out a loan between 1998 and 2006 it won't be wiped until I'm 65. This is definitely not 20 years after I graduated.

Does anyone have any experience of this? What's going on? How can it be 65 when they told me it was 20 years when I signed up?

Any help is much appreciated, it's currently a bit of a worry.

Thanks!

 

[chimneys]

Am perplexed how living abroad means you don’t have to pay and then get it written off after a relatively short period?

So British taxpayer pays but foreign climes get the benefit of your university education?!

 

[TWOCHOICEStom]

I've heard lots of "Just never pay it! It eventually runs out and you won't have to pay a penny!" stories.... I'm not sure how many of them are true.

I would give them a ring and ask anonymously.

 

[BHANSC]

Am perplexed how living abroad means you don’t have to pay and then get it written off after a relatively short period?

So British taxpayer pays but foreign climes get the benefit of your university education?!

That's definitely not the case now and you should still pay it off if overseas - https://www.litrg.org.uk/international/leaving-uk/uk-student-loan-repayments-when-going-overseas

 

[Flounce]

I am struggling to have any sympathy whatsoever with the OP

 

[KZNSeagull]

Am perplexed how living abroad means you don’t have to pay and then get it written off after a relatively short period?

So British taxpayer pays but foreign climes get the benefit of your university education?!

It's not like that anymore - you have to make your own arrangements directly with the student loan company.

 

[Happy Exile]

Somewhere on the internet there's probably a copy of the agreement documentation from the period you received the loans. Might be worth a trawl.

 

[Garry Nelson's Left Foot]

Am perplexed how living abroad means you don’t have to pay and then get it written off after a relatively short period?

So British taxpayer pays but foreign climes get the benefit of your university education?!

It's what hey told me. I phoned them up before moving and asked what I had to do. They said I didn't have to pay it until I returned so just let them know when I moved back to the U.K.

 

[jonny.rainbow]

I remember the protests against introducing tuition fees back in the late 90s.

Tony Blair had a desire to reduce unemployment figures by getting as many 18-year-olds into education as possible. Of course, many could not pay the newly introduced fees and, with the removal of maintenance grants, were forced to take out these loans, saddling themselves with repayments into their early 60s.

The legacy of New Labour.

 

[TWOCHOICEStom]

For what it's worth, I had to pay even though I moved to Sweden.

I had to inform them every year of what I earned and provide proof every bloody year. Their website, customer service and general ability to communicate and help me pay were absolutely atrocious. And awful hold music is on a 30 second loop I believe designed to drive you insane.

I hate that company more than any other.

 

[Jimmy Grimble]

My experience of the SLC is that they are charlatan bastards, so you have my sympathies and I hope you never pay them a penny.

Definitely agree with the doing it anonymously advice. A friend of friend went years without paying anything so phoned them up asking what was going on. Turned out they had lost her in the system somehow. During the phone call they took her details and set her up to start making payments. At the end of the call she asked what would have happened if she never phoned up… I’ll let you guess the answer

 

[Insel affe]

I remember the protests against introducing tuition fees back in the late 90s.

Tony Blair had a desire to reduce unemployment figures by getting as many 18-year-olds into education as possible. Of course, many could not pay the newly introduced fees and, with the removal of maintenance grants, were forced to take out these loans, saddling themselves with repayments into their early 60s.

The legacy of New Labour.

That an invading Iraq because they had weapons of mass destruction......

New Labour were nothing but watered down Tories.

 

[seagull_si]

NSC I think I need your help.

I got a letter from the students loan company today requesting information on my working situation. It says that they need this info even if I'm living overseas.

Now, I graduated uni in 2001. When I took the loan I was told that if I lived overseas I didn't have to pay and after 20 years it would become invalid/null(if thats the right term - I wouldn't have to pay it).

I've lived overseas for 20 years. Before I left I told them that I was moving overseas and asked what i should do about my loan. They said nothing, just tell them when I move back. So, I've spent the last 20 years not too worried about it as I've been overseas. It's also been over 20 years since I left uni so based off my previous knowledge it should now be null and void.

However, I can't find anything online that backs that up. What I can find is if you took out a loan between 1998 and 2006 it won't be wiped until I'm 65. This is definitely not 20 years after I graduated.

Does anyone have any experience of this? What's going on? How can it be 65 when they told me it was 20 years when I signed up?

Any help is much appreciated, it's currently a bit of a worry.

Thanks!

You will be on the Scheme 1 student loan. As you started before 2005 the loan get written off when you turn 65. After 2005 it get written off after 25 years from graduation.

Student loan repayment threshold changes: everything you need to know

Stay updated on changes to student loan repayment thresholds and what they mean for you. Learn how to manage your repayments effectively.

www.unbiased.co.uk

In the UK the loan will automatically get deducted from your pay. Overseas companies are not required to do this. This does not mean that you do not have to pay, you just need to arrange the repayments yourself. However, if you are not planning on working in the UK, why would you do this? Of course things change later in life and you may return, but then you would automatically start repaying a certain percentage above the threshold.

 

[JetsetJimbo]

They're wiped after 30 years: https://www.bbc.com/news/newsbeat-51190779

But this varies depending on when you studied. I was in the last cohort of students before tuition fees were introduced, starting my degree in 1997. My brother started his in 1996.

I finished paying mine off about 10 years ago. My brother has had a much less fortunate life than me, and he's never been able to afford to pay a penny back. His will be wiped soon, as the old-style loans (what they now call "mortgage-style" loans) are wiped after 25 years. See here: https://www.moneysavingexpert.com/n...t-loan-repayment-offers---should-you-accept-/

Given the dates you've given, you probably come under the 30-years rule rather than the 25-years one.

I'm not sure where you got 20 years from. I suspect you may be misremembering. Or you may have got duff info because you were starting your studies while these rules were changing.

 

[Bry Nylon]

That an invading Iraq because they had weapons of mass destruction......

News to me; I always thought it was because Saddam had an outstanding student loan from Kingston Poly?

 

[Garry Nelson's Left Foot]

They're wiped after 30 years: https://www.bbc.com/news/newsbeat-51190779

But this varies depending on when you studied. I was in the last cohort of students before tuition fees were introduced, starting my degree in 1997. My brother started his in 1996.

I finished paying mine off about 10 years ago. My brother has had a much less fortunate life than me, and he's never been able to afford to pay a penny back. His will be wiped soon, as the old-style loans (what they now call "mortgage-style" loans) are wiped after 25 years. See here: https://www.moneysavingexpert.com/n...t-loan-repayment-offers---should-you-accept-/

Given the dates you've given, you probably come under the 30-years rule rather than the 25-years one.

I'm not sure where you got 20 years from. I suspect you may be misremembering. Or you may have got duff info because you were starting your studies while these rules were changing.

You will be on the Scheme 1 student loan. As you started before 2005 the loan get written off when you turn 65. After 2005 it get written off after 25 years from graduation.

Student loan repayment threshold changes: everything you need to know

Stay updated on changes to student loan repayment thresholds and what they mean for you. Learn how to manage your repayments effectively.

www.unbiased.co.uk

In the UK the loan will automatically get deducted from your pay. Overseas companies are not required to do this. This does not mean that you do not have to pay, you just need to arrange the repayments yourself. However, if you are not planning on working in the UK, why would you do this? Of course things change later in life and you may return, but then you would automatically start repaying a certain percentage above the threshold.

I have to accept that it is possible I mis remembered the 20 years. I can't find anything online about it so maybe it is 30 years. Or maybe it is when I'm 65. It's difficult to say as there are a number of different sources. Hopefully it's 30 and not 65 but I suspect its the latter.

My main worry is not the length though rather that I was told I didn't have to pay when living overseas. If I had known I had to pay I could have had it paid off by now. Instead I presumably have a huge student debt hanging over me which I'll probalby never be able to fully repay.

 

[Justice]

My experience of the SLC is that they are charlatan bastards, so you have my sympathies and I hope you never pay them a penny.

Definitely agree with the doing it anonymously advice. A friend of friend went years without paying anything so phoned them up asking what was going on. Turned out they had lost her in the system somehow. During the phone call they took her details and set her up to start making payments. At the end of the call she asked what would have happened if she never phoned up… I’ll let you guess the answer

Silly girl

 

[Justice]

Am perplexed how living abroad means you don’t have to pay and then get it written off after a relatively short period?

So British taxpayer pays but foreign climes get the benefit of your university education?!

It’s not a public fund

 

[seagull_si]

I have to accept that it is possible I mis remembered the 20 years. I can't find anything online about it so maybe it is 30 years. Or maybe it is when I'm 65. It's difficult to say as there are a number of different sources. Hopefully it's 30 and not 65 but I suspect its the latter.

My main worry is not the length though rather that I was told I didn't have to pay when living overseas. If I had known I had to pay I could have had it paid off by now. Instead I presumably have a huge student debt hanging over me which I'll probalby never be able to fully repay.

It is Scheme 2 loans that get written off after 30 years. Scheme 2 are for people who started after 2012. Scheme 3 is for postgraduate degrees (Masters, PHD). I have no idea about scheme 4 and 5. You are scheme 1 pre 2005, so your write off date is when you turn 65. I am scheme 1 but post 2005, so mine gets written off after 25 years. I do pay some back each month (approx £120 per month), but I will not repay in full within 25 years. I think it is only graduates that go onto top jobs will repay in full.

 

[Chicken Run]

It’s not a public fund

Who pays for it? Genuine question