When does repayment begin?
You will normally start making student loan repayments through the PAYE scheme from the April following the date you graduate from or leave your course.
If you are due to start paying back your Student Loans from April 2012, you’ll have the option of taking a repayment break of up to five years.
How are repayments made?
Your employer(s) will be advised by HM Revenue & Customs (HMRC) to calculate and deduct student loan repayments from your pay. These deductions will be shown on your pay slip so you can see how much is being paid back each pay period.
At the end of the tax year your employer(s) will advise HMRC of the total deductions they have made. HMRC will then pass details of your total repayments to us and we will apply your repayments to your account.
We only receive details of your repayments after the end of the tax year so we advise that you keep your pay slips and P60, which is given to you by your employer(s) at the end of each tax year, as a record of the repayments you have made.
Claiming back student loan repayments if you earned less than £15,000 in the tax year
It is possible that you had a student loan deduction in a pay period where you earned over the monthly or weekly threshold, but over the whole year your income did not exceed £15,000. This might happen if you receive a bonus payment or work overtime.
In this situation you will be able to apply to us for a refund of the repayments you have made in that year. However, we will not make a refund unless you ask for one.
You may decide you do not want a refund, in which case you will pay off your loan more quickly and pay less interest on the outstanding balance.
Overpaying your student Loan
You will be entitled to a refund if you overpay your loan. We will only be able to authorise a refund either:
- Once HMRC confirms your total earnings and student loan repayments at the end of the tax year; or
- You send us your pay slips showing your student loan deductions for the current tax year.
