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Thread: Are you paying off your Student Loan?

  1. #1
    Join Date
    Oct 2004
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    Wellington
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    Default Are you paying off your Student Loan?

    I was wondering who has moved to nz and is actually paying off their student loan? How does the process work?

    On the flipside who has emigrated and 'forgotten' to make any repayments?

  2. #2
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    Sep 2005
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    I also am facing student loans - in US dollars any info would be appreciated. I figured I'd just set up an automatic debit payment thing at the minimum amount from a US bank account.

  3. #3
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    christchurch (formerly essex)
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    have heard a rumour that if you live outside of the UK it is very hard for them to collect from you, and that the debt is written off after 7 years. BUT.....this could be an urban myth.

  4. #4
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    Jun 2005
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    deffo urban myth.

    If you default they will pass it to a debt collection agency who will do their utmost to collect, plus expenses.

    After 6 years the debt may be waived ( ie they'll give up) but you can still have CCJ's and a bad record etc and a credit rating in the UK that is the pits.

    Not good if you want ( or need ) to go back to the UK permanently. It is easier to get credit here than it is in the Uk.
    This replaces the long post I wrote that dissappeared.

    Deborah

  5. #5
    Join Date
    Dec 2004
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    Johnsonville, Welly
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    91

    Default Get it sorted!

    Hi Guys,

    Got the news hot off the press, ring student loans, now honours loans in the UK and tell them you're emigrating. They need a letter from your current employers to say you're leaving and a copy of your flight tickets/visas etc. They will then put this on their system and once you get a job in NZ, inform them of your new pay details and they'll let you know if you're over or under the threashold which is currently just over 2000 per month gross.

    If they don't hear from you after three months or haven't recieved any payments after three months, they'll pass it onto a debt collector who carries a piece of wood with a nail hammered into the end

    I figure it'll be a while before I earn that amount of money so I've nothing to loose. I've also heard about the 7 year thing...not too sure f it's a myth, but when I worked for the loans dept at the Uni of Greenwich, loads of foreign students were doing just that and disappearing...wouldn't recommend it though.

    Hope that helps

    Rich

  6. #6
    Join Date
    Aug 2005
    Location
    California, USA
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    Quote Originally Posted by wanderingoregonian
    I also am facing student loans - in US dollars any info would be appreciated. I figured I'd just set up an automatic debit payment thing at the minimum amount from a US bank account.
    If your student loans are government-funded (i.e. through the US Dept of Education), it's been my experience that they aren't very flexible in their repayment options. My suggestion would be to consolidate your loan(s) with another lender (i.e. Citibank) and make payment arrangements with them.

    Also, there was a law passed recently in the US that allows the govt to collect on defaulted student loans indefinitely. In other words, you can't get out of paying on your student loans no matter how long you wait.

  7. #7
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    Sep 2005
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    Wellington
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    yeah - I did the consolidation thing (how could I pass on locking in at 3.5% ). If I just think about how the loans helped me get degrees that help me qualify as a skilled migrant it makes the thought of paying these off while earning NZ dollars a little less painful...

  8. #8
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    Sep 2005
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    Waikanae via Yorkshire
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    The loan is only written off when you get to either 50 or 55 I can't remember which

  9. #9
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    Sep 2004
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    South East England
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    Quote Originally Posted by Questor
    The loan is only written off when you get to either 50 or 55 I can't remember which
    I must find out if that is true. As Steve is 48 and only graduated about 3 years ago with a huge student loan does that mean he's only got to pay off 2 more years. Incidentally has anyone else found it impossible to get an annual statement off Student Loans Company?

  10. #10
    Join Date
    Sep 2005
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    Waikanae via Yorkshire
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    From the Student loans company website - for loans if you started HE before Sep 98:

    As long as you are not behind with your loan repayments, any amount remaining due under your credit agreement will be cancelled after 25 years or when you reach the age of 50, whichever is earlier. Or if you last borrowed from us at the age of 40 or over, we will cancel any amount remaining due under your credit agreement when you reach the age of 60.

    I can't fins any information about the newer style loans, but I imagine (although possibly not) that they will be broadly similar

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