Question: If you have a student loan which you haven't started paying off yet as your don't earn enough does it get written off after a certain number of years?
its in the small print somewhere. with the older loans it used to be about 25 years or until your aged 50ish, which ever comes first. Nooope, you've gotta keep paying it until it's gone. When you are buried. It doesn't just disappear. It will go on your credit report and make you look bad. You need to call them up and set up some kind of payment plan, that you can afford. NEVER NEVER NEVER or unless that other one called NEVERRRRRRRRRRRRRRR The answer is never. The government will get its money back one way or another, through wage garnishment, withholding tax refunds, etc. Additionally going into default will make you ineligible for future aid and possibly impact other privileges. Your best bet is to call them and ask for a forbearance or work out an extended payment plan. it gets written off after its has been fully paid off.
its easy to borrow but harder to pay back bear this in mind when taking out financial agreements with companies
they want you to be in debt to them. No it is there forever Remember them in your will. no, it all depends on how much you are making a year. the goverment will take a certain amount from you but will take into consideration costs for rent, food, personal items etc.
so it depends on how much you make, so this way they wont take a huge sum of you and leave you with nothing. nope, they will find you somehow Don't get into debt if you have no intention of paying it off. Erm the clue is in the word - Student LOAN.
If you did'nt have to pay it back it would be called a Student GRANT, or better still a gift.
And what's the point in spending four years doing a degree if you end up with a job that does'nt even cover the cost of your course. DON'T wait until you earn enough to have to start paying it off legally. Start paying it off now, set up a small direct debit say about ВЈ100/ month and so this will gradually pay it off and it'll make sure the interest on the loan doesn't make the loan even bigger. This is what i am doing.
Do you really want to wait until you are earning above the threshold and then have to start paying it off?
Look and don't know where you found out that the debt gets written off but that is something i am unaware of, devts being written off is EXTREMELY rare in the world of money. If it is true whats stopping the government lowering the threshold right down to ВЈ5,000/ year earnt. in the next two years.
Whats stopping them increasing the interest rate on the loan. Like others have said the gov. will get you somehow somewhere in the end.
Its my view that YOU (like me) have a debt which WE owe wether we like it or not, its also my view that this ugly debt will bite me hard in the future if i don't start by lessening the blow now. By paying off ВЈ100/month by direct debit i've effectively washed my hands of it and can forget about it and the whole horrid pointless university affair. It'll take 8 years but thats not a problem to my fine ***. Why should it get written off, you borrowed the money in good faith, pay it back or they will sell the debt on to debt collectors who will hunt you down and take every thing you own and you will still be in debt to them, they will never leave you alone for the rest of your life. I'm pretty sure it does, but it's something like 50 years. Chances are you'll be earning over the minimum level at some point in your life, though! i heard somewhere if you live in another company for 10+ years you don't have to pay your student loan back It's my understanding that even filing bankruptcy doesn't cancel a student loan, so the people who are telling you never are pretty close to right. You are sooooo wrong! Maybe if you are looking at a Private student loan but if you are talking about a standard government loan, it is NEVER EVER written off. People starving and homeless on the streets have gone to court requesting a bankruptcy and been denied. The law is that if there is ANY chance that you can earn an income at any time in your life, there is no relief for student loans. Collectors will tell you straight out 'we are the government and we can do what we want'. There are no income requirements for payback either. You can request a forbearance due to low income for a certain number of years but interest continues to accrue the entire time. After that, if you make $100 a week, they have no issues taking every dime of it through garnishment if necessary. Student loans are a Whole Other animal and you pay back 3-times what you get. Been there, done that, still doing it probably till I die. $30K = $90K in repayment. I pay $5000 per year and Maybe $800 of that goes to principal!
FYI - This is all assuming you are in America. Other countries are definitely different. NZ & OZ, at least they used to, did the write off thing if you lived out of the country for 10-years. NZ has recently gone to interest free student loans. Not sure what it is in Britain.
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