The Fixer: unpaid student loan

Have you been left out of pocket due to poor service or sharp practice? Do you have a money problem that won't go away?

It can seem impossible to get a fair result when you are battling a financial issue alone. But never fear! The AOL Money Fixer is here to help.

Dear Fixer,
I graduated from university about 10 years go. While I was there, I took out three student loans - one for each year of my course.

I thought I would definitely have paid them off by this age, but having decided to become a carer after leaving university I've never earned enough to even start paying the money back.

I don't want to be in debt, but I am not in a position to pay my student loans back. And if I keep doing the same job, I doubt I ever will be.

Is the amount I owe getting bigger all the time? And what happens if you never earn enough to repay your student loans?

I don't want to call the Student Loans Company in case alerting it to my case causes them to demand payment!

M Doyle, Romford

Dear Ms Doyle,
The fact that you took out your student loans between 1998 and 2012 means that they are income continent loans, which you have to pay back at a rate of 9% of your annual earnings above £16,910.

Loans of this kind currently accrue interest at 1.5% (which has been the rate for the last five years or so).

So the amount you owe will go up every year. That does not mean you need to panic about paying it off, though.

As you went to university in England, current rules state that your entire student loan debt will be cancelled - or written off - if you reach the age of 65 without earning above the threshold (which is likely to go up over time).

However, if you ever feel you would like to make voluntary payments, you can do so using the Make a Payment service on the Student Loans Company website.

The Fixer

Whatever your financial problem, write to themoneyfixer@aim.com and The AOL Money Fixer will get on the case.

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