How repayment works

Find out how student loans are repaid

Image supplied courtesy of The University of Hertfordshire © www.herts.ac.uk

Living in the UK (UK, EU and non - EU nationals)

The method of repayment depends on the borrowers circumstances:

  • Employed - repayments will be deducted at source by the employer through Pay As You Earn.
  • Self-employed - repayments will be calculated through a Self Assessment (SA) tax return.

Repayers are identified in the UK Tax System by their National Insurance Number (NINO).  This is provided when the customer first applies for student loans.

Student Loans Company (SLC)  instructs HM Revenue & Customs  to notify the repayer or their employer, when repayments are due to start. Repayments are deducted from taxable earnings, and allocated to the customer's loan account balance annually. When the balance is expected to be fully repaid, HMRC notifies the repayer or their employer, that repayments should cease. Any further repayments received before this has happened can then be refunded.


Living outside the UK (UK, EU and non - EU nationals)

Repayers living outside the UK for more than three months will need to complete an Overseas Income Assessment Form with details of their current employment status and income information.  This allows SLC to assess the borrowers gross income and determine what level of repayments should be made if any.

If repayment is required, a repayment schedule is issued and the borrower must make arrangements to

  • repay the amount indicated each month (factoring in current exchange rates); and
  • ensure the repayment reaches us by the date specified.

An Overseas Income Assessment Form must be completed every 12 months. 

You can find more overseas information and the form (with guidance on evidence to send) on the Student Loan Repayment website.


Voluntary repayments

Repayers can make repayments to their account at any time.  These repayments will be in addition to any repayments they may already be making though PAYE, Self Assessment or from outside the UK.

If the repayments are higher than the total interest applied, then voluntary repayments can reduce the timescale over which the balance is repaid.

You can find more information from the Student Loan Repayment website.


Pay off your loan

If you want to pay off your loan, then you'll need to contact us for a settlement figure.  If you're currently repaying through your salary (PAYE) then please have:

  • your last P60; and
  • all your payslips for the current financial year.