Student loan - deferred for 14 years!

[gyzmo]

A friend of mine has a student loan whch, as the title suggests, has been successfully deferred for 14 years now.

Can this go on indefinitely? Is there a point at which they have to consider it being written off?

Also, he is thinking about going back to uni and, may want another student loan

Would he get one based on the above?

[noomill060]

Has it been defered each year?

The debt will die when the borrower reaches their 50th birthday, if they were under 35 at the time they took the loan out.

[gyzmo]

It has been deferred each year yes, and he was under 35 when he got the loan. Does that mean there is nothing he can do?

[noomill060]

I dont know.

SLC lend for undergraduate first degrees, I dont know if they would lend for post-graduate stuff.

Check out their website.

[gyzmo]

Ok - it was more to do with getting him off having to pay or continue to defer the loan. Think I'll get him to go down the CCA route and see how that goes...

[ELSwat]

Originally Posted by noomill060

Has it been defered each year?

The debt will die when the borrower reaches their 50th birthday, if they were under 35 at the time they took the loan out.

Actually noomill - the qualifying age at the time of the loan agreement, for cancellation at 50, is actually under 40.


"Cancellation
12.—(1) A borrower's liability to make repayments in respect of all loans shall be cancelled if—

• (a) he dies; or

• (b) he is a person to whom paragraph (2) applies.

(2) This paragraph applies to a borrower who is not in breach of any obligation in relation to any loan and—

• (a) if he was aged less than forty when he last entered into an agreement for a loan, if he attains the age of fifty or if the loan for which he last entered into an agreement has been outstanding for not less than twenty-five years (whichever event is the sooner); or

• (b) if he was aged not less than forty when he last entered into an agreement for a loan, if he attains the age of sixty."

The Education (Student Loans) Regulations 1993

The Education (Student Loans) Regulations 1992

The Education (Student Loans) Regulations 1994

[Ragdog]

I have deferred mine successfully for the past 16. As long as your earnings are below the specified limit, you can defer until the debt is written off. I'm lucky enough to be self employed and I can claim a lot of expenses that others cant to bring my earnings down. I took mine out in the days when students ran up large loans and then declared themselves bankrupt after they completed their education. I think the regulations concerning the repayment of student loans have changed in bankruptcy situations now, not sure.

[waterbottle]

Anyone have any idea about challenging the government on this as a human rights issue.

The argument might be that when the loan was taken out there was no mention of it being excluded from bankruptcy. I have often wondered about this.