What is a Fixed Term Loan?
If you took out a student loan while on a university or college course that began before September 1998 you will have a Fixed Term Loan. This is also sometimes called a Mortgage Style Loan.
Repaying a Fixed Term Loan
You will normally repay a Fixed Term Loan in monthly instalments by Direct Debit.
If you have four or fewer loans for courses beginning before 1998, you will repay them over 60 monthly instalments.
If you have five or more loans you will repay them over 84 monthly instalments.
The monthly repayment amount is calculated on the basis of the total amount borrowed, plus interest (based on the rate of inflation), divided by the total number of months over which you repay.
If you earn under a certain amount, you may be eligible to defer (postpone) your student loan repayments. For more information please see the deferring your loan section.
Interest
The interest rate on Fixed Term Loans can be found on the Interest Rates page.
Your current balance
You can use your online account to see how much you still owe. Find out how to use your online account.
Loan cancellation
Under certain circumstances we may cancel your liability to repay your loan. We will not cancel your liability to repay if you are behind on any repayments for a student loan.
For example, your loan may be cancelled if:
- You were under the age of 40 when your last agreement for a student loan was made and you reach the age of 50.
- You were aged 40 when your last agreement for a student loan was made and you reach the age of 60.
- Your last agreement for a student loan has been outstanding for no less than 25 years.
If you are permanently unfit for work and can provide evidence to show that you receive disability related benefit we may also be able to cancel your liability to repay your loan.
If a student or former student passes away
If a student or former student dies, you should write to the Student Loans Company and let them know. You will also need to send them the student’s original death certificate or coroner’s report, which will be returned to you.
You should send this to:
Douglas Gould
Student Loans Company Limited
100 Bothwell Street
Glasgow
G2 7JD
