[Help] Student loans

[Brian Fantana]

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.

I graduated in 2009 and finished paying mine off last year. I earn a decent amount but certainly not a really top job.

 

[chimneys]

It’s not a public fund

In the same way Nat West/

It’s not a public fund

What, just like RBS/HBOS/Lloyds weren’t until the hit the fan?!

 

[seagull_si]

I graduated in 2009 and finished paying mine off last year. I earn a decent amount but certainly not a really top job.

I would say I earn a decent wage, but nothing spectacular. I have just checked my latest statement from SLC. In the 22/23 tax year I repaid £1400 but £1200 interest was added, so my loan amount only decreased by £200 for the year. I graduated 8 years ago this year and at a net payment of £200 per year I will not be paying off the balance in the next 17 years.
Different people will need/are entitled to different amount of loans which could explain how you managed to pay your off and I never will.

 

[mile oak]

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.

i think you will find the government keeps changing the goalposts here.

 

[keaton]

I think it is only graduates that go onto top jobs will repay in full.

Of the recent student loans yes. But I graduated just after the OP and have 18 months to go, and I'm well below a top job

 

[deletebeepbeepbeep]

My loan will be paid off by the end of next year. Can't wait, suddenly £2500 a year better off.

It has taken me 18 years to do it but I received full whack (including retaking a year) and was poorly paid for at least my first 10 years worth of employment.

 

[seagull_si]

I have just been looking into this further. despite me being in full time employment since the day I graduated in 2016, my student loan has actually increased by 10% due to the interest being added to my balance. In the last tax year the interest added was more than I paid in 5 of the 12 months.....which is madness.

 

[BenGarfield]

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?!

Tax doesn’t pay for student loans nor do the payments to the students loan company as they’re not loans, but another type of tax.

 

[JOLovegrove]

I am shocked that there are people on here that seem to be pro paying it back. It is ludicrously expensive, I joined Uni in 2012, so was the first batch to get hit by the 9k a year.

That, plus how expensive it is to get on the housing ladder, and my generation (and I am sure every generation thinks this) feel like it has been hit the hardest.

 

[Bakero]

I have to fill in their form online every year to confirm I'm still poor and will have to keep doing so until I'm 65.

My partner, 5 years younger than me, only has to do it until she's 46 (this is the case for plan one loans taken out after 2006, which are written off 25 years after the first repayment was due).

@Garry Nelson's Left Foot Use this for an idea of what your repayments might be

Overseas UK Student Loan Repayments

 

[amexer]

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.

Does seem unfair to let people who move abroad have it for free. Every chance somebody made a right cock up up telling you that 20 years ago

 

[chimneys]

Tax doesn’t pay for student loans nor do the payments to the students loan company as they’re not loans, but another type of tax.

“We are a non-profit making government-owned organisation that administers loans and grants to students in colleges and universities in the UK.”

If it fails it will be the British tax payer that bails it out/balances the books!

 

[Weststander]

I am shocked that there are people on here that seem to be pro paying it back. It is ludicrously expensive, I joined Uni in 2012, so was the first batch to get hit by the 9k a year.

That, plus how expensive it is to get on the housing ladder, and my generation (and I am sure every generation thinks this) feel like it has been hit the hardest.

Probably those here who own their home and have/had a student loan, have more than decent household income. Starting on the housing ladder in southern England in the last 20 years is expensive, to do that whilst making repayments to SLC, takes a good salary.

Or huge deposit from the bank of Mum and Dad.

 

[jcdenton08]

I really resent paying mine back, as I only took the leap to study as a mature student due to Clegg’s “non-negotiable promise” about freezing student loans to get in government (which I voted for). Which he then backtracked on.

I know the Tories forced him into it, but a promise is a promise. This is why I will only begrudgingly engage with SLC and never vote Lib Dem again - ever.

The single biggest direct cost a government ever has or likely ever will directly cost me on a false promise.

 

[Jimmy Grimble]

I have just been looking into this further. despite me being in full time employment since the day I graduated in 2016, my student loan has actually increased by 10% due to the interest being added to my balance. In the last tax year the interest added was more than I paid in 5 of the 12 months.....which is madness.

Yep. I’m in a very similar position. Would probably have to earn close to 100k a year to pay it all off. It’s just another tax and means young people have less money to spend on things which might actually help the economy.

I am shocked that there are people on here that seem to be pro paying it back. It is ludicrously expensive, I joined Uni in 2012, so was the first batch to get hit by the 9k a year.

That, plus how expensive it is to get on the housing ladder, and my generation (and I am sure every generation thinks this) feel like it has been hit the hardest.

It’s just a reflection of the average age on this board. If this was a thread on Twitter/X, there’d be hundreds of young adults sharing their stories of being shafted. There’s no doubt that generation Z/millennials have had it far worse than their previous generation in terms of cost of university and housing.

Probably those here who own their home and have/had a student loan, have more than decent household income. Starting on the housing ladder in southern England in the last 20 years is expensive, to do that whilst making repayments to SLC, takes a good salary.

Or huge deposit from the bank of Mum and Dad.

Pretty much everyone in my peer group of youngish adults who has managed to get on the housing ladder has done so through some kind of financial help, or through staying living with parents until their late 20s and beyond.

 

[El Presidente]

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.

Strange policy given there were relatively few unemployed 18 year olds with good A level results…

 

[El Presidente]

I really resent paying mine back, as I only took the leap to study as a mature student due to Clegg’s “non-negotiable promise” about freezing student loans to get in government (which I voted for). Which he then backtracked on.

I know the Tories forced him into it, but a promise is a promise. This is why I will only begrudgingly engage with SLC and never vote Lib Dem again - ever.

The single biggest direct cost a government ever has or likely ever will directly cost me on a false promise.

Just as well the benefits of Brexit wasn’t sold on a pack of lies.

 

[Weststander]

Yep. I’m in a very similar position. Would probably have to earn close to 100k a year to pay it all off. It’s just another tax and means young people have less money to spend on things which might actually help the economy.

It’s just a reflection of the average age on this board. If this was a thread on Twitter/X, there’d be hundreds of young adults sharing their stories of being shafted. There’s no doubt that generation Z/millennials have had it far worse than their previous generation in terms of cost of university and housing.

Pretty much everyone in my peer group of youngish adults who has managed to get on the housing ladder has done so through some kind of financial help, or through staying living with parents until their late 20s and beyond.

I’ve seen clients make substantial gifts to their kids for that, six figures a pop.

 

[jcdenton08]

Just as well the benefits of Brexit wasn’t sold on a pack of lies.

I’m a remainer. Brexit hasn’t DIRECTLY cost me the student loan fees I now owe. Relevance?

 

[dazzer6666]

I’ve seen clients make substantial gifts to their kids for that, six figures a pop.

Helps with IHT planning/avoidance providing the parents survive 7 years……..

£200 billion in student loans outstanding and £20 billion a year being added, with supposedly around 25% expected to be repaid (increasing to 60%+ over time but can’t see that happening personally).

Particularly daft that anyone studying to become a doctor, nurse or similar ends up with student loans. Should be written off providing they give sufficient time back to the NHS through employment.