How does loan repayment work?

February 11, 2020
Author

You can pay your loan however you prefer and you'll have a lump sum to hand back to your university.

Most universities will provide a student account so you can store all your payment data.

You'll need to register with the Student Accounts Service (SAS) as an applicant, and then you'll be asked to set up a bank account for them to manage the loan.

How does this work?

You'll have to pay the amount due plus interest as it's due, when you make the loan payment.

The repayment period is usually 14 to 24 months, although at some universities it may be shorter.

You don't pay for the full loan period but you get a fixed sum back at the end, in addition to any interest you pay.

There are no penalties or additional charges unless the university that you're on is affected by money issues.

You can't just repay the loan at any time, but you have to pay it at least half way through your repayment period.

How much you should repay

If you make the payment on time and your debt is repaid within 60 days you'll get a refund of any interest paid, this is particularly true for no credit check loans. If you do make the payment and then fail to repay it within 60 days the university could cancel your course, and you could lose your place.

The amount of your repayment is calculated based on the amount you borrowed and your income. If you make a mistake or miss a payment, you may end up paying more than your debt was originally worth. When will I get the refund? You can get your refund in the following circumstances: If you miss more than two payments and they're repaid within 60 days, you'll be paid back that amount  just remember to pay in full before you get any money back.

If you miss more than one payment and they're repaid within 60 days of your last payment, the university will pay you a proportionate amount.

If you miss any payments and they're repaid after 60 days, the refund will be in full (if you don't pay back your loans before 60 days you may lose access to the student grant, check the calculator for this). How long will it take to receive my refund? It may take up to 6 weeks. How can I apply for my student loan refund? You can apply for a refund through Student Finance and ask for a refund, if you missed more than 2 payments or payments that were missed on time and repaid within 60 days of their due date. Once you have requested a refund, you can log into Student Finance online or call us on 0800 20 90 20 to request your refund. Do I have to pay back all of my student loan? No, student loan repayments are refundable only if they were made on time. You may be asked to pay back part of your loan, if you made any late payments. You must repay the whole of your student loan if it was taken out on a course that is no longer on offer.

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