The debt can feel like it hangs around for decades for some
Student loans aren’t like a normal debt that follows you forever – but they can still hang around for ages. MoneySavingExpert founder Martin Lewis has told UK graduates there are a few ways to see the balance disappear, and for some people, it’ll be time instead of their wallet that makes the difference.
The harsh reality is that newer rules mean plenty will be coughing up money for much longer than older graduates ever did. In an Instagram video, Martin set out four main ways student finance can be cleared.
The obvious one is simply repaying it – covering tuition, any maintenance borrowing, and the interest that racks up after you leave. But he stressed most people historically haven’t cleared the whole tab themselves, because the system is designed so that many borrowers reach the wipe date before the balance hits zero.
Things like grants, bursaries and scholarships don’t need paying back at all – that’s ‘free’ support, typically aimed at living costs. For many former students, the more realistic finish line is the write-off point, where the remaining balance is cancelled once the repayment clock runs out.
Exactly when that wipe happens depends on where you’re from in the UK and when you started university. For Scotland or Wales, if you began from 2012 onwards, the debt is written off 30 years from the April after you leave university.
Northern Ireland works differently, too. Martin says: “In Northern Ireland from 2012 onwards, it’s 25 years after the April after you left university.” England is where it gets more fiddly, because the cut-offs change depending on your start date.
For English students, the broad rule of thumb looks like this:
- Started from 2012 to 2022: Written off after 30 years (from the April after you left)
- From 2023 onwards: Written off after 40 years (from the April after you left)
That’s why Martin warned that newer graduates have their debt hanging around for much longer and he said 2023 entrants and beyond “could be paying for almost all of your working lives”. Beyond paying it down or waiting for the write-off, Lewis also highlighted two grim-but-important scenarios where the balance gets cancelled.
If someone dies, their student debt is cleared and doesn’t get handed to family members. Martin said: “That’s important to know because it means if you were to die, no one would have to pick up the debt from you afterwards.”
The other is where someone is formally assessed as “unlikely to ever be able to work again” due to physical or mental illness. In that case, the loan can also be wiped.
And if you’re wondering what you actually owe right now, you can check quickly online via your Student Loans Company account on GOV.UK. Once you sign in with your details, the account area shows your outstanding balance, the plan you’re on, and the interest rate applied.
If your balance gives you a headache, you’re not alone. The numbers can look scary, so checking your plan and interest rate is the quickest way to understand what’s actually happening. See the GOV.UK website for help and support.
