Student Loan Debt: How to Deal with My Arrears

For most people getting a full-time education would mean taking out a student loan to cover the entire costs. This does not only include tuition fees but also accommodation, living expenses and other related costs. Taking out a student loan wouldn’t be a burden yet while you’re studying. However, they can be a heavy load to carry during the time to pay it back.

If you’re in a struggle to repay a student loan we can assist you to maintain a budget so you can stay on course while meeting your essential living costs and paying it off.

Old Style and New Style Loans

Perhaps you’ve heard student loans being labelled as either ‘old style’ or ‘new style’. The category by which your student loan is classified can be determined by when your education started:

Old Style Loans

If your education commenced before 1998, you have an old-style loan, or what is known as mortgage-style loan. This class of loan is recorded under the Consumer Credit Act. This loans are repayable over 5 or 7 years if the original course persisted more than 3 years. 

New Style Loans

If your student loan was taken out after the year 1998, it is classified as a new style loan, or what referred to as income-contingent loans. These loans are diminished from your earnings or wages in the form of monthly instalments when you begin earning over a specific threshold. 

Differentiating Student Loan Debts

Repaying an Old-Style Student Loan Debt

Payment on your student loan can be delayed if your income is under a threshold. For instance, the threshold to deferral from September 1, 2016, to August 13, 2017, amounts to £29,126 gross per annum, or £2,427 per month.

You can reach out to the company who is dispensing your loan to delay payments. This could be:

If you’re eligible for the delay as an outcome of altering repayment threshold, talk to the company managing the deb. Interest will remain to be appended to the loan amount even if when deferred. Additionally, you would not need to ensure secure payments for the next 12 months.

Repaying a New Style Student Loan Debt

The repayment of your loan is automatically deferred each year if you’re income is under the threshold for that period.

The repayments will commence when you meet the threshold. When this happens, you cannot arrange reduced monthly payments. However, any loans that are taken out in the UK and Northern Ireland after September 1, 2012, will hold any outstanding balance written off 30 years later during the first due payment.

Any remainder left to settle on an income-contingent loan before the allotted period is written off in by means below:

England, Wales & Northern Ireland 

Loans that are taken out before September 1, 2006, ends when you reach 65. Loans after such period end 25 years later when the first repayment was due


Loans that were taken out before September 1, 2007, ends when you reach 65. Loans that were taken out after such period, ends 35 years after the initial repayment was due

Help and Support on Student Loan Debt

Though it would not be possible to negotiate in reducing student loan debt payments, we can help you examine your budget to assist you in managing your income effectively.

This could make it easier for you to cope up with your priority bills and other essential living costs and expenses.

If you have other types of debts along with your student loan debt, we can help you determine the best debt solution that will suit your circumstances.

Our advice tool which you can use online can assist you with pertinent tips and advice concerning all types of debts. Alternatively, you can speak with our debt experts to come up with the best solution to put your debts under control.