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The UK Government has completed the sale of part of the student loan book on 6 December 2017

Sale of Student Loan Debt

 

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 conditionswill 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.uk

 

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.

 

Changes to Interest Rates and Thresholds 15/08/2017

The Department for Education (DfE) have confirmed the annual updates to the Interest Rates and Thresholds of Income Contingent Student Loans and Mortgage Style Student Loans, as set out in the relevant regulations and terms & conditions of the loans.

Income Contingent Loans

Undergraduate loans

Income Contingent Student Loans for pre-2012 (Plan 1) loans)

From 1 September 2017 until 31 August 2018, the maximum interest rate set for the existing Income Contingent Repayment Loans will be 3.1%. However, the low interest cap will be triggered, and therefore the rate to be charged from 1 September 2017 will be 1.25%.

Please monitor this website regularly as the rates may change during the academic year.

From 6 April 2018, the repayment threshold will rise to £18,330.

Income Contingent Student Loans for post-2012 (Plan 2) loans

From 1 September 2017 until 31 August 2018, one or more interest rates may apply to you:

Your circumstances Interest rate
Whilst studying and until the April after leaving the course If you come into repayment from April 2018 RPI + 3% (6.1%) Variable interest, dependent upon income
If you come into repayment from April 2018 Variable interest, dependent upon income
RPI (3.1%), where income is £21,000 or less, rising on a sliding scale up to RPI + 3% (6.1%), where income is £41,000 or more
If you lose touch with SLC or do not send them the information they require RPI + 3% (6.1%), irrespective of income, until SLC have the information they require

Changes to repayment thresholds in April need Parliamentary approval. For now, the threshold remains £21,000.

If you do not know your repayment plan type, you can find out by using our tool.

Postgraduate Loans

From 1 September 2017 until 31 August 2018, the interest rate for borrowers in England taking out a Postgraduate Loan for a Master’s degree will be 6.1% (RPI + 3%).

The repayment threshold for Postgraduate loans continues to be £21,000.

Mortgage Style Student Loans

From 1 September 2017 until 31 August 2018, the interest rate for mortgage style loans will be 3.1%.

The deferment threshold for mortgage style loans will be £29,219.

Any queries from borrowers who have mortgage style loans should be addressed to their loan administrator.

 

Request for contact and employment details

We are contacting our customers by email and text message to request their current contact and employment details. We are doing this to make sure our customers receive relevant and up-to-date information from us at the right time.

If you have received an email or text message from us regarding this we require:

  • your current home address;
  • your current home telephone number;
  • your current mobile number;
  • your current email address; and
  • confirmation of whether or not you are employed.

This information will allow us to inform you of any changes we make which may affect your student loan account.

If you have received this email or text message, you can update your information by calling us on 0300 100 0603. If you are overseas please call 0044 141 626 3770. Our office opening hours are 9am to 5:30pm.

You can also email your information to: contact@slc.co.uk.

Please note this email address is for the purpose of providing the requested contact information only. Any questions raised will not be responded to via this mail box. If you have any queries regarding your account or you have documents to return then please call us on the telephone number detailed above.


 

Completing your repayment term - advice to customers on repayment options

If you are within two years of repaying your loan in full you can now choose to make your remaining monthly repayments by Direct Debit rather than through PAYE.


Student loan repayments are usually collected through the tax system with the Student Loans Company only able to monitor your balance on an annual basis, rather than monthly. This means that it is possible you could repay more than is outstanding on your loan.


If you choose to set up a monthly Direct Debit to pay your remaining balance then we can calculate exactly when you are due to repay, making sure you only pay exactly what you owe.


For more information about repaying by Direct Debit, see completing your repayment term.



 

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Your Security is Important to us

At Student Loans Company, we take your security very seriously and are committed to protecting you whenever you use our services. To help us do this you should always have your Customer Reference Number and Secret Answer available before speaking to one of our advisors. If you don't have your Customer Reference Number and Secret Answer you will be asked some additional security questions before we can access your account and help with your enquiry.



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