Students: Loans
The question
To ask the Secretary of State for Education, what steps Student Loans Company is taking to ensure that borrowers repaying through PAYE are not issued incorrect repayment demands.
Answered by Josh MacAlister
UK-based student loan repayments are collected by HMRC through the tax system. Employers deduct repayments for employees with a student loan when their earnings are above the relevant student loan repayment threshold. Employers will pass the collected repayments to HMRC, and HMRC pass details of the repayments to the Student Loans Company (SLC).
SLC may write to a customer directly if they have been paid more student loan or grant than they are entitled to. Overpayments are due to be repaid separately from the customer’s main student loan balance, and it is right that the SLC seek repayment of such sums.
If a borrower thinks they have received a letter in error, we encourage them to engage with SLC. Customer satisfaction is important to SLC, and they continue to invest in systems to provide customers with a more intuitive and comprehensively digital service. SLC welcomes feedback from customers to further improve their service.
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