Frequently Asked Questions: Student loan repayment
I live in the UK but I’m doing part of my course abroad – will I get a loan?
Yes, if your study abroad is a necessary part of your course and you’re going for at least eight weeks. Most language degrees involve some time abroad and that’s covered.
The maximum amounts are currently £5,255 or £4,570 if it’s your final year that you’re spending abroad. If you’re spending less than eight consecutive weeks abroad, you’ll get the same amount of loan as if you were spending the whole year studying in the UK.
However, if your course is studied abroad entirely, the SLC probably won’t pay out anything. If in doubt, ask your LEA.
I’ve finished my degree. I’m off travelling. Do I still have to repay my loan?
You need to let the SLC know what you’re doing and they’ll tell you where you stand.
It’s in your interests to tell them as soon as possible because it’s your responsibility to have them allow you to defer your repayments. If you just scoot off without getting your deferment authorised, you could have some serious explaining to do and some big payments to make when you come back.
If you’re going travelling and won’t be working, deferment shouldn’t be too big a problem because you’ll be under the fifteen grand income threshold for repayments anyway.
If, however, you’ll be living outside the UK tax system and will be earning above the threshold, you’ll need to make repayments direct to the SLC and not HM Revenue & Customs. You’ll need to provide evidence of your income for the financial year so they can calculate how much you should pay them.
If I’m away, can anyone else talk to the SLC about my loan on my behalf?
Afraid not.
It’s a legal thing. The Data Protection Act means the SLC can’t discuss it with anyone – not parents, not partners, not even your employer (they tell them no more than how much they want out of your salary each month).
The only way round it is to write a Power of Attorney letter to the SLC authorising them to release information to a named individual. Giving somebody Power of Attorney means they have the legal right to act on your behalf, so don’t go giving it to your new bessie mate from your night out - it should be someone you trust completely.
By the way, you can give someone Power of Attorney over your bank account, for example, but that doesn’t mean they have the same power over anything else – that includes bodily functions, your dreams - and your student loan.
What happens if I drop out or need to take some time out from my course?
If you drop out during the academic year, then that’s it, you’re cut off. You won’t get any more loan instalments and you’ll need to start paying your loan back starting from the April following the end of the academic year. You need to tell the SLC if you’re planning to leave your course, change course or take some time out.
If you’re away from your course for more than 60 days because you’re sick or have personal problems, you should also let the SLC know asap. Usually, they’ll make sure you continue to get your loan instalments so long as you don’t actually drop out.
Can part-time students get student loans?
Nope. There are some financially-assessed grants available instead, helping towards course costs, books etc. To find out more try calling the DfES information line on 0800 731 9133 or the SLC on 0800 405010. Or go to www.slc.co.uk
Part-time teacher training is treated differently and usually more generously, because the Government desperately wants more teachers.
I’m utterly skint. Can my future instalment(s) be brought forward?
No way, José.
The SLC is a stickler for rules, it doesn't matter if your favourite dress is on sale or you've got a huge gas bill to pay. Loans are doled out at the start of term, according to the dates supplied by the universities.
If your pocket is really hurting, check your eligibility for the Access to Learning Fund and then go ask your university’s or SU's Student Support Officer if you can get one.
I’ve received the full loan allowance. What if I still don’t have enough money to get by?
Try the Access to Learning Fund, scratchcards or singing in the street till people pay you money to stop. Still confused? The SLC are quite happy to answer questions and their helpline is mostly staffed by people with lovely Scottish accents, so try giving them a call on 0800 405010 . Or you can visit their website at www.slc.co.uk which is also helpful, but without the fine broque.
Last updated on: 14 August 2008