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Repayment allocation

How direct repayments are applied to your balance.

A direct repayment is a payment you make directly to SLC towards your student finance balance – it does not replace, but is additional to, any repayments you make through deductions from your salary or through Self Assessment.

When you make a repayment directly to SLC, the way the money is applied to your balance depends on the status of your account.

Direct repayments will normally be applied to your loan first. However, if you have a grant overpayment and you have requested that the repayment be applied to this, then the allocation will be different. We’ll need your Grant Reference Number if you want us to apply your direct repayment this way.

Direct repayments will be allocated in the following priority until each element of your total student loan balance is repaid in full. Direct repayments will then be allocated to the next element of your account (as applicable) until that has been fully repaid.

Loan balance

  1. Loan: Overseas arrears – where monthly repayments were due to be repaid directly to SLC when you were overseas, but were not, repayments will be applied to this part of your balance. Where more than one loan balance is in arrears, repayment will go towards the balance that has the highest interest rate first.
  2. Loan: Overseas scheduled repayments - where a loan balance is due to be repaid and you’re making your agreed scheduled repayments directly to SLC because you live overseas. Where there is more than one loan balance, repayment will go towards the loan that has the highest interest rate first.
  3. Loan: Overpayment(s) when you’ve finished studying – where you were paid a portion of loan that you’re no longer entitled to. Where more than one loan overpayment exists, repayment will go towards the balance that has the highest interest rate first.
  4. Loan: Overpayment(s) while still in study - where you were paid a portion of the loan you’re no longer entitled to, repayment will go towards this part of your balance. Where more than one loan overpayment exists, repayment will go towards the balance that has the highest interest rate first.
  5. Loan: Accounts in repayment status - where a loan balance is due to be repaid (you’ve left your course or graduated in the previous tax year and are now due to repay). Where more than one loan balance is in repayment status, repayment will go towards the balance that has the highest interest rate first.
  6. Loan: Accounts in payment status - where a loan balance isn’t due to be repaid (you’re currently or have recently been in receipt of student loan payments). When you have more than one loan balance, repayment will go towards the balance that has the highest interest rate first.
  7. Loan: Accounts in credit – where a loan has been repaid in full, any further repayments received will be credited to this balance until a refund is claimed.

Grant (when Grant Reference Number has been provided)

Direct repayments will be allocated in the following priority until each element of your total student finance balance is repaid in full. Direct repayments will then be allocated to the next element of your account (as applicable) until that has been fully repaid

  1. Grant: Overpayment(s) when you’ve finished studying – where you were paid a portion of grant that you’re no longer entitled to.
  2. Grant: Overpayment(s) while still in study - where you were paid a portion of grant you’re no longer entitled to.
  3. Grant: Accounts in credit – where any element of grant that became repayable has been repaid in full, any further repayments received using the Grant Reference Number will be credited to this balance, until a refund is claimed.
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