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Repaying your student loan

Student Money Week 2017

Whether you're a new student or about to finish your course, if there's something you want to know about repayment, ask our experts.

Nicholas has worked at the Student Loans Company for more than three years. He specialises in all aspects of repayment.

Duncan is a member of the HMRC Student Finance Team. He is responsible for producing guidance relating to HMRC's part in the student loan repayment process. This includes guidance for borrowers on the Gov.uk website. He works in partnership with colleagues from Student Loan Company to help make the process as smooth as possible.

(edited 8 years ago)

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Reply 1

Val17

Hi,
I'm going to apply for student finance as I'm starting university in September.
I have saved up some money this year and at any point in my studies my parents might also get the opportunity to help me repay my student debts so far.
How does repayment work? Can I repay before the end of my studies, in one go? And if I can get private finance for, let's say, my third and fourth years, can I stop receiving student funding for these years if I give a warning early enough?
If you could please explain how this works, it would be very appreciated, thank you.
Valentine

Reply 2

Gary-_-H

Hello, thanks for taking the time to learn about my problem :smile:

A little bit of background: I started Uni in 2014/15 academic year and took temporary leave early in Semester 2 on health grounds. Because of this the tuition fee for that year was halved.

Returning to Uni in this (2015/16) academic year from the start of Semester 2, the university does not require any tuition fee for this year. So, in my application to SF I put £0 on the tuition fee loan amount. This was upheld and agreed to on the declaration and such.

So, here's the thing: I'm now getting paid a tuition fee loan amount of around £4,500 directly to me. It won't be going to the University because they don't need it, I already have my maintenance loan and grant so I don't need it, and to be honest I don't know how this will stand in terms of repayment so I don't want it.

I suppose my question is if it does come to me is there a way to pay it straight back? Or if I did keep it, would it stack on top of my loan fees to be paid back AFTER university, or will they ask for it back as soon as they think I've been overpaid?
Is it a mistake they have made? Or should I just not worry about it and pay it off with the rest of my loans as usual after Uni?

Thanks in advance for any answers and/or advice, I really appreciate it :smile:

Reply 3

Samwin

Hi All

Basically last year (december 2015) my uni recommended I leave university as my health was and still is on the decline :frown:

Anyway, after lots of upset, mis information given and everything that goes with it, along with an unsuccessfull appeal and being accused of fraud by SFE (as my parents care for my younger severely autistic brother whom of which has multiple disabilities they couldn't afford to not make me pay rent; so I gave them the majority of my loan/grant, the rest going on books for the course and travel to and from college)

Anyway, with a now £780 debt to pay; I am really confused; as keep getting a letter from student finance telling me my loan application was successful O.o I am just finding them so confusing :frown:

Reply 4

Alex024

I graduated last year and after some postal issues I've been sent the declaration I need to fill out for repayment since HMRC can't match my records. There are two forms, living in the UK or living overseas.

I'm currently on a masters programme abroad (in the EU) but the overseas form is worded in a way that declares me resident in that other country.

This is a major issue. I'm applying for PhDs back home in the UK and I've been assessed as a home student (but my funding applications are still pending on the basis of home status). If I'm not resident in the UK for 3 years prior to starting the PhD then I'm classed as an EU student and not eligible for the full amount.

Obviously this seems ridiculous that I could be classed as EU when I'm a UK citizen abroad temporarily for study.

If I declare to student finance that I'm studying abroad and that info is passed to HMRC is that going to affect my home status for PhD funding (either through the university or the research council)? I obviously still have a UK home address.

Reply 5

M_lala00

Hi,

I'm planning to drop out my current course and would like to apply for a new one this September. I heard that SFE would probably charge me for an over-payment grant which I need to payback immediately.

My problem is I'm currently unemployed at the moment. Can I ask for a repayment plan to pay my over-payment grant (Monthly installments?) or can I ask them to deduct the over-payment grant fee to my maintenance grant this September?

Thank you in advance!

Reply 6

nikki.4

Hi,
Im currently a first year student doing a joint honours degree in Film and Creative Writing (CW). Film did not turn out to be what i expected it to and I'm just not happy at all. I have no idea of what i want to do in the future and see no point in continuing to study film when it makes me feel like s*** when i just think about it. I have 3 classes for film in one day per week and have missed all 3 days since this term started! I want to continue studying CW but I know i can't drop Film and continue doing CW for the rest of this term and summer term.

Although I am passing both classes I feel like i put more effort into my work for film because i hate it so it requires more concentration and this has held me back from doing better in CW. With all this in mind I think that its best for me to drop out and apply to do a single honours in Creative Writing for sep 2016.

I am really confused on how my repayment for student finance will work. I know i pay back the tuition fee when i start earning a certain amount. I recieved a Grant which i know that i dont pay back. I was supposed to live out but ended up staying at home and never updated that on my student finance. So I recieved a maintanence loan of about £2k last term and this term. I spent all my money last term and have spent within the range of my Grant only this term.

If i drop out during this term or at the end of this term which is the end of March, Will I have to pay back the Grant or the Mantanance Loan for either last term or this term...or even both??

Reply 7

Llinos_

So what do you do if you've been paid student finance but you've dropped out of uni?

Reply 8

suiagg

Hi, I was looking through about paying back your student loans, and I was wondering if how much you paid back depended on the size of the loan. The website said that if you made £25000 a year for example, you only pay back £30 a month, but if I were to get a large maintenance loan on top of the £9000 loan a year, it would take over 100 years to pay it all back at that rate. So I was wondering if the amount you paid back depended on the amount you owed, as otherwise I don't understand what the government gets from giving the money if you don't pay it all back.

Also, the maintenance loan depends on your household income, but is that just from working or does it take into account things like benefits and dla? We have a fairly decent household income including all that, but for several reasons our outcome is quite substantial, and so a larger maintenance loan would be preferable.

Reply 9

Becciilouisex

Hi everyone!I've decided during my Christmas break on my second year of uni, to drop out. It's a long story as to why but basically, myself & my flat mates from my previous year accumulated a lot of debt and I was forced to have to pay it all (£1000) and had to borrow £500 from family therefore I couldnt travel to uni, missed all of my first term and next month I have to pay my family back leaving me with no travel money again.I am due to start my second term tomorrow (and receive my loan) and I am going in to make an appointment with student services to discuss dropping out. My question is, once I receive my maintenance loan & grant, will student finance take that money straight back or will it just be added to the money I owe when I start my repayments? As obviously the money is for students and I will not be studying but I private let and still have rent and bills to pay and need food! I've been applying for jobs but no luck as yet and obviously I'm worried that the loan will be taken out and I'll be left homeless. Thanks in advance

Reply 10

LDJS1976

Hi. I graduated in 2002 and am still repaying my undergraduate Student Loan with the SLC. I want to apply for the new Postgraduate Student Loan for an MA course I've been accepted on in Sept 2016 - will I be able to receive the Postgrad Loan even though my previous Student Loan is 13 years old and still not paid off...? I pay it monthly out of my salary.

Reply 11

Apb89

Hi,

This is a complex issue. I started an undergrad degree at a university but quit after a few weeks. I spent the money that student finance provided me with for that term - obviously I had to pay it back to them as I haven't completed the term.

I started at a different university two years later - I graduated from this course and was funded by Student finance. I was repaying the money from my previous short experience at uni but due to money problems and then being out the country I stopped repayments. The debt then got passed onto a debt collection agency which is who I now pay the money back to.

Will this affect my chances of getting another loan? Can you be blacklisted, as such? I want to apply for the new postgrad loan but am very worried that the fact I broke repayment agreement will hinder my application. I'm hoping that SF do not consider things like this.

I'm also paying back for the course I graduated from, it comes directly out of my salary.

Hello,

I have a saving account and have more than £3000 in that account.

Let's say I earn below the threshold and thus I do not need to pay the loan back. But will the balance in my savings account affect the repayment?

Reply 14

Nicholas Dock

Official Rep

Hi There,

I will now be available for the next hour to answer more of your repayment questions regarding your student loan.

Reply 15

Nicholas Dock

Official Rep

Original post by LDJS1976

Hi There,

Yes, you can still apply for further funding even though you still have an outstanding balance from your previous loan.

If you stop working or your salary falls below the threshold then you wont be eligible to repay through your salary but interest will continue to accrue on your previous balance.
I f you wish to you can still make voluntary payments towards the loan or set up direct debit while you study

Thanks

Reply 16

Nicholas Dock

Official Rep

Original post by Apb89

Hi There,

If you still have arrears on your account due to the previous loan, then you wouldn't be eligible for further funding until the debt had been fully repaid.
If your debt gets passed to a third party collections agency then it can effect your credit rating.

For further information you could speak to an advisor in our collections Dept. on 0141 243 3970.

Thanks

Reply 17

Nicholas Dock

Official Rep

Original post by abarna92

Hi There,

The student loan repayment is based solely on tour income so if you have savings but don't earn above the threshold then you do not make payments towards your loan.

Thanks

Reply 18

Nicholas Dock

Official Rep

You can also find lots of useful information regarding repayment of your loan on our website www.studentloanrepayment.co.uk

The website allows you to make voluntary repayments ,set up Direct debits, find out your balance and update contact details.

* You do require a password and secret answer to gain access to the website.

If you do not have these details, please contact us on 0300100 0611 and we will be happy to set you up with an online account.