UK Student Finance
An A-Z of Student Finance

Deferring Student Loan Repayments

If your gross income is below £2,034 a month, you will be able to postpone (defer) your student loan repayments, as long as you provide proof of your income or means of financial support.

If you took out a student loan for a course that started before 1998, you can apply to defer your repayments if your income falls under a certain amount.

Repayment arrangements are different for student loans taken out for courses beginning after 1998.

When Can You Defer Repayments?

You can apply to the Student Loans Company to defer your student loan repayments if your gross monthly income falls below the current deferment threshold of £2,034 or less per month.

Gross income is calculated before any deductions (for example, Income Tax or National Insurance).

You will continue to be charged interest during any period of deferment.

How Do You Defer Repayments?

You apply to defer repayments by sending a deferment application form to the Student Loans Company.

To assess your eligibility for deferment, they will only take your income into consideration - you do not need to provide details about the income of any spouse, partner, parent or other relative.

Until you receive confirmation of deferment in writing, you must assume that repayments are due, regardless of whether your income falls below the deferment threshold.

If you are already making repayments

If you are already repaying your student loan, you can ask the Student Loans Company for a deferment application form at any time.

The form gives details of the maximum gross income level you can earn if you want to delay paying back your loan and simple instructions on how to complete it.

If deferment is accepted, your start and finish dates will be confirmed in writing.

Deferment lasts for 12 months and you must make a fresh application each year if you wish to continue deferment.

If you are yet to make your first repayment

In the February after you complete your studies, the Student Loans Company will send you a letter advising you that you will be due to start repaying your loan.

A deferment application form will be enclosed with this letter and you will be given the opportunity to apply for deferment. If you do not do this, repayment will automatically commence in April.

If you are eligible to defer, you must complete and return the deferment application form to the Student Loans Company with evidence of your income or means of financial support.

Backdating Deferments

Deferment can be backdated for a maximum of three months only.

Any remaining arrears (repayments which have fallen due but not been met) are due for repayment. This means that if you apply late, you may be liable for some repayments.
 

 

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