When Does a Student Loan Get Written Off in the UK?

In the UK, student loans are structured in a way that makes repayment affordable for graduates. While many individuals may fully repay their loans over time, others may never need to repay the full amount. This is because student loans are automatically written off after a certain period, depending on the loan plan you are on and your circumstances. Understanding when your student loan will be written off is key to managing your finances and planning for the future.

This article provides a detailed breakdown of when different types of student loans get written off, covering the various repayment plans, criteria, and timeframes that apply.

What Are the Different Student Loan Repayment Plans?

In the UK, there are different student loan repayment plans depending on when you took out your loan and where you were studying. These include:

• Plan 1: For students who started their course before 1 September 2012 in England and Wales, and for students from Northern Ireland and Scotland.

• Plan 2: For students who started their course on or after 1 September 2012 in England and Wales.

• Plan 4: For Scottish students.

• Postgraduate Loan: For students who took out a loan to study a Master’s or Doctoral degree.

Each plan has its own repayment terms, including when the loan gets written off.

Plan 1: When Does It Get Written Off?

For students on Plan 1, the point at which the loan gets written off depends on where you are from.

• England, Wales, and Northern Ireland: Your student loan will be written off 25 years after the April you became eligible to start repaying. This is usually the April after you leave your course or the April after your course finishes. If you haven’t repaid the full loan after this period, any outstanding balance will be written off. The loan will also be written off if you turn 65 before the 25 years are up.

• Scotland: The loan is written off 30 years after the April you became eligible to repay or when you turn 65, whichever comes first.

Plan 2: When Does It Get Written Off?

For students on Plan 2, the rules differ slightly.

• England and Wales: Your student loan will be written off 30 years after the April you became eligible to repay. This is the same whether you took out the loan for undergraduate study or for a Teacher Training course. If you haven’t fully repaid the loan by the end of this 30-year period, any remaining balance will be written off.

Plan 2 loans are not written off based on age, so if you still owe money after 30 years, the loan is cancelled, regardless of how old you are.

Plan 4: When Does It Get Written Off?

For Scottish students on Plan 4, the loan is written off either:

• 30 years after the April you became eligible to repay, or

• When you turn 65, whichever comes first.

The 30-year period starts from the April after you finish your course or leave it.

Postgraduate Loan: When Does It Get Written Off?

For students who took out a Postgraduate Loan (to cover tuition or living costs for a Master’s or Doctoral degree), the repayment terms are as follows:

• The loan will be written off 30 years after the April you became eligible to repay. This is the same regardless of your age when you took out the loan.

Just like with Plan 2 loans, there is no age-related cancellation for Postgraduate Loans, and the outstanding balance will be written off after 30 years if it hasn’t been fully repaid.

Early Loan Write-Off Due to Disability or Death

In certain circumstances, student loans can be written off earlier than the standard 25- or 30-year period:

• Disability: If you become permanently disabled and are unable to work, you may be able to apply to have your student loan written off earlier. To qualify, you would need to submit medical evidence proving your condition and that you are permanently unfit for work.

• Death: If a borrower passes away, the outstanding student loan balance is automatically written off, meaning it won’t be passed on to your estate or family members.

What Happens If You Don’t Earn Enough to Repay Your Loan?

If your earnings never exceed the repayment threshold (currently £27,295 per year for Plan 2 loans), you won’t have to make any student loan repayments. If you continue to earn below the threshold, your loan will remain untouched until the point it gets written off. This ensures that individuals who do not earn enough to repay their loan will not be burdened with debt for their entire lives.

What If You Have More Than One Loan?

If you have more than one student loan (such as an undergraduate loan and a postgraduate loan), each loan has its own repayment plan and will be written off according to its specific rules.

For example, if you took out a Plan 2 loan for your undergraduate degree and a Postgraduate Loan for a Master’s degree, the loans will be written off at different times:

• Your Plan 2 loan will be written off 30 years after the April you became eligible to repay.

• Your Postgraduate Loan will be written off 30 years after the April you became eligible to repay it.

Conclusion: Understanding When Your Student Loan Will Be Written Off

Student loans in the UK are designed to be affordable and are only repaid when your income exceeds the repayment threshold. If your income never reaches this threshold, or if you don’t fully repay your loan within the specified timeframe, your loan will be written off. The length of time you will need to repay your loan depends on your repayment plan, but it ranges from 25 to 30 years.

Understanding when your student loan will be written off can help you manage your finances and alleviate concerns about long-term debt. It’s also important to keep in mind that your student loan will not be passed on to your family members after your death, and it can be cancelled in cases of permanent disability.