Student Loans are part of the Government’s financial support package for students in higher education in the UK. They are available to help students meet their expenses while they are studying and it is HMRC’s responsibility to collect repayments where the borrower is working in the UK. The Student Loans Company (SLC) is directly responsible for collecting the loans of borrowers outside the UK tax system.

The main finance package elements available to students include loans for tuition fees and maintenance loans (to help with living costs). The maximum loan amounts are capped, the maximum amount depends on the students circumstances. Maintenance grants are also available under certain circumstances. The grants do not have to be repaid but do reduce the amount of maintenance loan a student is entitled to.

Students that have finished their studies and entered the workforce must begin to make loan repayments from the April after they have finished their studies or when their income begins to exceed the annual threshold. The annual threshold increased to £17,335 from 6 April 2015. Repayments are deducted at a rate of 9% of income over the threshold. For employees paid monthly, the threshold is £1,444 per month. 

Further information for individuals with outstanding student loans is available on the student loans company repayment website at www.studentloanrepayment.co.uk