Is a student loan cancelled if you die or can't work?
Most student loans end on a set write-off date, but there are two other ways one can be cancelled early. Both need evidence, and neither happens automatically.
If someone with a student loan dies
The Student Loans Company (SLC) can cancel the loan. You can call or write to tell them. You’ll need to give them the customer reference number (CRN) of the person who has died and send one of:
- an original death certificate
- an original coroner’s interim certificate
- a copy of the coroner’s certificate, stamped by the coroner
- a copy of a foreign death certificate
GOV.UK is clear that SLC cannot cancel any loans without evidence. Contact details are on GOV.UK’s “Contact the Student Loans Company” page.
If you become permanently unfit to work
Your loan might be cancelled if you get one of these UK disability-related benefits:
- Personal Independence Payment
- Disability Living Allowance
- Industrial Injuries Benefit
- Severe Disablement Allowance
You have to write to SLC and ask. They ask you to include your CRN and copies of:
- a letter from a doctor, consultant or psychiatrist saying you’re “permanently unfit for work”, or a Medical Declaration form completed by a medical professional
- evidence, dated within the last 12 months, confirming the disability-related benefit you receive
- a completed Customer Declaration, signed and dated by you
SLC isn’t responsible for any fee a medical professional charges for completing the declaration. If you aren’t well enough to make the request yourself, SLC can accept information and evidence from a third party, but it can only communicate directly with them if they have Power of Attorney.
The qualifying benefits and required documents are set by SLC and have been updated over time, so check GOV.UK for the current list before relying on it.
Neither of these is a reason to skip repaying now
It can be tempting to think that because a loan may be cancelled in some circumstances, there’s no point repaying it. But these are rare situations, not a plan, and repayments are set by your income anyway.
Where this fits with the write-off date
Every plan also has a regular write-off date, after which any balance is cancelled. See when does my student loan get written off? The calculator models that date, and doesn’t model early cancellation on death or disability.
Sources: GOV.UK, cancellation if a customer dies and cancellation if permanently unfit to work.