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PGCE option

 

If you took out an Income Contingent Loan for a PGCE course and had previously taken out a Mortgage Style Loan, you may have the option of choosing which loan you want to repay first.


When and how we let you know about the PGCE Option?

You normally start to repay your Income Contingent Loan in the April following the date you graduate or leave your course. In the January prior to this, we will send you a PGCE option letter and form.


What repayment options do you have?

You have 3 options, they are:

  1. repay your Mortgage Style Loan first
  2. repay your Income Contingent Loan first
  3. repay both types of loan at the same time

You should inform us of your choice by completing the PGCE option form and returning this to us.


Alternatively, speak to one of our customer advisors and update your option over the phone, by calling on 0300 100 0611.


You can change your option at any time by contacting us on the above number.


Option 1 - what happens if you choose to repay your Mortgage Style Loan first?

You will begin to repay your Mortgage Style Loan by monthly direct debit.


If your Mortgage Style Loan is deferred, SLC will cancel any deferment period to allow the repayments to begin.


Repayment of your Income Contingent Loan will be suspended until you change your PGCE Option or you have fully repaid your Mortgage Style Loan.


Option 2 - what happens if you choose to repay your Income Contingent Loan first?

You will begin to repay your Income Contingent Loan via the UK Tax System, if your income is above the repayment threshold. Your repayments will be collected by HM Revenue & Customs (HMRC) through one or both of the following methods:

You will make repayment directly to Student Loans Company if you are employed overseas


Deferment of your Mortgage Style Loan while repaying your Income Contingent Loan


If you wish to repay your Income Contingent Loan first but are currently repaying your Mortgage Style Loan, you must apply for deferment of your Mortgage Style Loan

To apply for deferment:

  • tick the box on the PGCE option form requesting a Deferment Application Form.
  • We will send you a Deferment Application Form which you must complete and return.
    Note: when sending us your application, you must also provide the required evidence, demonstrating that your salary is below the deferment threshold.
  • Repayment of your Mortgage Style Loan will continue until deferment is approved.

You can also request a Deferment Application Form by contacting us on 0300 100 0611.


What if my Mortgage Style Loan is already deferred?


If repayment of your Mortgage Style Loan is currently deferred, you will only need to complete the application form again when it is next sent to you near the end of your deferment period.


Option 3 - what happens if you choose to repay both types of loan at the same time?

You will begin to repay your Mortgage Style Loan by monthly direct debit. If your Mortgage Style Loan is deferred we will cancel any deferment period, allowing repayment to begin.


You will also begin to repay your Income Contingent Loan via the UK Tax System, if your income is above the repayment threshold (or directly to Student Loans Company if you are employed overseas).


What happens if you do not advise Student Loans Company of your preference for the PGCE Option?

If you do not indicate any preference to us this may result in you repaying both types of loan at the same time.

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