What is an Income Based Loan?
If you took out a student loan while on a university or college course that began in September 1998 or after you will have an Income Based Loan, also sometimes called an Income Contingent Loan.
How an Income Based Loan is repaid
The amount you pay back is determined by how much you earn. Your repayments are normally collected through the tax system by HM Revenue and Customs. For general information about student loan repayments see the section How and When You Repay
Depending on your employment circumstances, you will make repayments in one of three ways:
Pay as You Earn (PAYE).
This is where your employer deducts a student loan repayment directly from your pay slip. For more information, see the section on repaying through PAYE
Self Assessment.
If you are self-employed you will be responsible for calculating and paying your student loan repayments to HM Revenue & Customs. For more information, see the section on repaying through self assessment
Overseas Repayment.
If you are employed overseas or are out with the UK tax system you will make student loan repayments directly to us. For more information, see the section on Overseas Repayment.
Interest
The interest rate on Income Based Loans can be found on the Interest Rates page.
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
