Student loans and limitation period

No it doesn't apply see section 11:

The borrower no longer has any liability to repay as provided for in the Loans Regulations. A borrowers liability shall be cancelled:

On death of the borrower

After 25 years or when the borrower reaches the age of 50 (60 if the borrower was aged over 40 when he/she last borrowed), whichever is the earlier, provided the borrower is not in default;

If borrower is in receipt of a disability related benefit and permanently unfit for work.

However, we need to be clear about how the limitation period works.

The right to sue on the loan only arises on default of payment. Action can be bruoght for any default within six years of that default (AFAIK these loans are not under seal, so the period is six years, not twelve).

This does NOT mean that the loan disappears six years after it is taken out, and th epassage referred to above is dealing with a different question.

Andrew McGe

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