The £27,000 pensioner loophole: 'I’ll never have to repay my student loan'

Christine Armstrong, aged 63, benefits from a quirk in student finance rules. Jessica Winch explains how pensioners can take out a loan - but never pay it back .

Christine Armstrong

Christine Armstrong went to university when she was 63 years old. Three years later, she holds a BA in English from Oxford University and is now completing a Master’s degree.
Like many undergraduates, Mrs Armstrong was granted a student loan to cover her tuition fees during her degree, as well as a maintenance grant and a bursary from Oxford.
But unlike most of her younger contemporaries, she is not required to pay her student loan back, as her pension does not exceed the threshold beyond which repayments are required.
The recent change in the student fees system could make this a possibility for many more pensioners interested in a university education. Under the new system, introduced last September, people don’t have to repay a student loan if they earn less than £21,000 a year. This threshold will rise in April 2017, in line with average earnings.
Research from Prudential showed that those entering retirement this year expected an average income of £15,300 a year – well below the loan repayment threshold.

- Telegraph.co.uk