ICR Debt Sale

On 6 December 2017 the UK Government completed the sale of part of the student loan book, for a batch of English loans that began repayment between 2002 and 2006. This includes loans issued by English local authorities which entered repayment between 2002 and 2006.

What this means for you

The sale means an independent Investment Company called; Income Contingent Student Loans 1(2002-2006) Plc will own your loan(s) on behalf of a number of investors.

The UK Government has confirmed that:

  • The individual and overall repayments you make will not change as a result of the sale.
  • The way you repay your loan(s) will not change as a result of the sale.
  • The way the interest rate is calculated will not change as a result of the sale.
  • The terms and conditions of your loan(s) will not change as a result of the sale.

Customers do not need to take any action.

Student Loans Company will write to advise all customers whose loans are included in the sale within 3 months. The majority of customers with a student loan will not have been included in this sale.

You should continue with any repayment arrangement(s) you’ve made with SLC or the Debt Collection Agency. If you have any queries regarding your agreement you should contact SLC or the Debt Collection Agency dealing with you loan account directly.

Not currently making repayments

I am not currently making any repayments - how does this sale affect me?

SLC will continue to administer your loan(s). You will become eligible to start repaying your loan(s) from the April following the date you graduate, or leave your course. Your repayments are linked to your income, so you only make repayments when your income is over the threshold. The current threshold is £17,775 a year. This works out as £341 a week or £1,481 a month. See how and when you repay for more information.

General questions relating to loan sale

What is an Income Contingent Repayment (ICR) Loan?

Income Contingent Repayment (ICR) loans are the type of student loans which were made available from 1998 onwards to higher education students. These loans are repaid based on income, normally via deductions from a customer’s salary if employed or through Self Assessment tax return if self-employed.

Whose loans are being sold?

The sale includes Plan 1 (i.e. pre-2012) loans issued by English local authorities which entered repayment between 2002 and 2006. This is relevant to you if you are a borrower who finished or left their course between 2001 and 2006. The sale is being undertaken in accordance with the Sale of Student Loans Act 2008.

On behalf of the Secretary of State for Education, SLC will write to those customers, at their home address, whose loans are included in the sale. Letters will be issued within three months of the sale concluding. If you do not receive a letter within that period, your loan is not one of those that have been sold.

No response or action to the letter will be needed.

The majority of customers with a student loan will not be included.

Are Government allowed to do this?

The Sale of Student Loans Act 2008 permits the sale of student loans but requires that sold and unsold loans are treated in the same way.

Will the terms and conditions of my loans change?

No, the terms and conditions will not change as a result of the sale.

Will the interest rate change?

No, the interest rate will not change as a result of the sale. The interest rate is currently set by the Department for Education (Government department responsible for student loans). The interest rate is updated once a year on 1st September, using the Retail Price Index (RPI) figure from March of that year. This process will remain the same for sold and unsold loans after the sale. See Interest rates for more information.

Who is Income Contingent Student Loans 1 (2002-2006) Plc?

The sold loans have been transferred to Income Contingent Student Loans 1(2002 – 2006) Plc, who will retain ownership of the loans for the duration. The repayment amounts received on these loans will be passed on to the investors. Neither the investors nor Income Contingent Student Loans 1(2002 – 2006) Plc will have any rights to change the terms of your loan, including the amount you repay and when you repay it.

Who do I contact about my Income Contingent Loan?

You will continue to contact SLC for any queries, or updates, to your account(s).

How can I find out the balance of my account?

Log in to your account at www.studentloanrepayment.co.uka

Can I choose to pay off my loan balance immediately?

Yes you can. Call us on 0300 100 0611 (Mon - Fri 8am - 8pm and Sat 9am - 4pm). If you’ve been making repayments through your salary make sure, that when you call, you have:

  • your last P60; and
  • all your pay slips for the current financial year

Will I still receive a statement?

Yes, an annual statement will still be issued shortly after HMRC notify us about any repayments you have made during the previous tax year.

I have student loan deductions taken through my salary/wages, will this change?

No, if you’re in employment and earning over the weekly/monthly threshold then student loan deductions will continue to appear on your payslip. For more information, see the section Repaying through PAYE

Repaying through PAYE or Self Assessment

Will I have to increase my repayments?

No, the way repayments are calculated will remain the same. See how and when you repay for more information.

I send my Self Assessment tax return to HMRC each year, will this change?

No, you should continue to complete your Self Assessment tax return each year and return it to HMRC. HMRC will still calculate student loan deductions based on your earnings for the tax year. For more information, see the section Repaying through Self Assessment

I live outside the UK, how will this affect me?

If you already have a repayment schedule then this will continue as normal. If you intend to live outside the UK for more than 3 months see the section Repaying from overseas

I currently have arrears on my loan account(s) - do I need to do anything?

You should continue to repay the agreed arrangement you’ve made with SLC or the Debt Collection Agency. If you have any queries regarding your agreement you should contact SLC or the Debt Collection Agency dealing with you loan account directly.