Prevent Over Repayment scheme for Plan 2 loans
Prevent paying back more than you owe when completing your repayment term
Prevent paying back more than you owe when completing your repayment term
HM Revenue and Customs notify us once each year of how much you have repaid through the tax system. And because the repayments you make are deducted throughout each tax year but don’t get passed to us until after the end of that tax year, it is likely you could repay more than is outstanding on your loan.
As you approach the end of your repayment term, we will give you the option to change the way you make your repayments. So, rather than paying your student loan through the tax system, you will be able to pay directly to us, by monthly Direct Debit.
If you have both a Plan 1 and a Plan 2 loan you can’t change to Direct Debit repayments until one type of loan has been paid off in full. Once you have paid off one Plan type you can then change to Direct Debit repayments for the last two years of your remaining loan.
By making your repayments by monthly Direct Debit, we'll be able to calculate exactly when you are due to repay your loan in full. This means:
You can switch to Direct Debit if you've received a letter from us stating that you’ve almost finished paying back your student loan, or if you expect your loan to be paid off in full within 4 to 23 months.
you can either:
Call and tell us what you want to do. You’ll need your payslips for the current tax year when you call us, so that all repayments you have made can be taken into account.