Repayments System and Customer Information

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1 Repayments System and Customer Information Kathleen Bain Verification Operations Angela Gibb Repayment Contact

2 Verification Operations Content Journey to repayment Repayment Partners When do you start repaying your student loan? What repayment plan are you on? How much will you repay? What should you do if you think you re repaying too soon? Repaying from overseas How much interest is charged on customers student loan? 18/19 Service Enhancements

3 Journey to Repayment

4 Repayment Partners DWP Validate National Insurance Number (NINO) Provide NINO if not provided on application HMRC Match the customer record to employment data Instruct employers to start/stop taking deductions Send repayment information annually to SLC Employers Validate National Insurance Number Take deductions (NINO) from employee salary at source Send repayment information annually to HMRC

5 When How do and you when start do repaying customers your make student repayments? loan? If your course is full time You are due to start repaying your loan the April after you finish or leave your course. If you re a part-time student If you study part-time, you are due to start repaying the April four years after the start of your course, or the April after you finish or leave your course, whichever comes first.

if you started a full-time or part-time undergraduate course on or after 1 September

6 What How repayment and when plan do customers are you on? make repayments? Repayment Plan 1 if you started your course before 1 September 2012 Repayment Plan 2 if you started a full-time or part-time undergraduate course on or after 1 September 2012 PGL if you started a Postgraduate Master s degree or Doctoral course on or after 1 August 2016

7 When How do and you when start do repaying customers your make student repayments? loan?

example if they work overtime or get a bonus.

8 How How much and will when you do repay? customers make repayments? Repayments will be taken if customers earn over the weekly or monthly threshold at any point in the year, for example if they work overtime or get a bonus. If at the end of the tax year their overall income has been below 25,000, they can contact SLC to apply for a refund. This information is for Plan 2 loans. If the customer started their course before 1 September 2012 they ll have a Plan 1 loan.

9 What How should and when you do if customers you think you re make repayments? repaying too soon?

Repaying How and from when overseas do customers make repayments? Repay 9% of any income over the repayment threshold for the country of residence.

10 Repaying How and from when overseas do customers make repayments? Repay 9% of any income over the repayment threshold for the country of residence. Repayment threshold in another country could be different from the UK due to differences in living costs. Customers must provide details of their circumstances and income. Customers also need to provide evidence of their income or how they re supporting themselves if they re not earning. SLC send a repayment schedule showing how much the customer is required to pay each month.

11 How How much and interest when do is customers charged on make student repayments? loans?

12 Key facts: recap The amount you ll repay will be based on your income, not what you borrowed. If your income changes, either rising or falling, the amount you repay will change too. The interest you re charged is based on your income. You ll still need to repay if you move overseas and your income is above the country s repayment threshold. Your loan will be cancelled 30 years after you re due to repay. It s important you keep your details up to date or we won t be able to keep you up to date about your loan, and you could be charged more interest than you should be.

13 18/19 Service Enhancements ENHANCE ONLINE SERVICE FOR UK CUSTOMERS LAUNCH ONLINE SERVICE FOR OVERSEAS CUSTOMERS LAUNCH REPAYMENT SOCIAL MEDIA CHANNELS DEVELOP MORE FREQUENT DATA SHARING WITH HMRC ENHANCE ONLINE INFO & GUIDANCE PREVENT OVER REPAYMENT

14 Topics Overpayments Methods of Recovery Advice for students who have an overpayment ICR Overseas Arrears Repayment Contact Repayment Statistics 17/18 Overpayment Changes Overpayment Info Questions

Overpayments Grant & Loan Overpayments occur for the following reasons: Eligibility Course de-designated Residency Change of Circumstances (CoC) Sponsors estimated income differs from evidence

15 Overpayments Grant & Loan Overpayments occur for the following reasons: Eligibility Course de-designated Residency Change of Circumstances (CoC) Sponsors estimated income differs from evidence received or no evidence received Estimated Child Care costs differ from evidence received or no evidence received when requested. Grant/Loan awarded is for full time study and part time study attended Assessment error Withdrawal/Suspension Student withdraws from their course and is no longer entitled to full amount of funding awarded Student suspends from study but remains in course any overpayment would be repaid on graduation.

16 Grant and Loan Overpayment Methods of Recovery Recovered by the Awarding Authority i.e. Student Finance England In course Recovery Return to Study Recovered by SLC Repayments Contact Department End of Course After End of Course Withdrawal Any overpayments that occurred/remained during 16/17 were not clawed back in the 17/18 academic year. These will be become repayable when the student graduates or withdraws.

Advice for students who have an overpayment A Student who has an overpayment whilst In Course should: Be aware of the impact an overpayment may have on their current and future entitlement whilst

17 Advice for students who have an overpayment A Student who has an overpayment whilst In Course should: Be aware of the impact an overpayment may have on their current and future entitlement whilst they remain in study Contact their Awarding Authority immediately if they wish to dispute the overpayment Return any requested evidence as soon as possible A Student who has an overpayment due to withdrawal or after they graduate should: Contact SLC as soon as possible to discuss repayment

18 ICR Overseas Arrears Customer moves overseas > 3 months Overseas Income Assessment Form required Evidence of income required Form & evidence will be used to assess how much the customer should repay A customer will fall into arrears when they: Fail to provide the Overseas Income Assessment Form and maintain default monthly repayments Fail to maintain scheduled monthly repayments

19 Repayment Contact Repayment Contact deal with incoming calls and written communication from customers who have: A Loan Overpayment A Grant Overpayment Clear the amount in full Repay over a period of time Overseas Arrears We contact customers by letter, telephone & SMS/ . We work with customers to agree repayments based on their financial circumstances in order to have a positive resolution on their account, such as: Complete an Overseas Income Assessment Form Refer to Free Debt Management Service where required

Repayment Contact SLC s Repayment Staff are trained in line with the Financial Conduct Authorities

Code of Practice SLC s Repayment Contact Department received Company Accreditation in 2017 - all staff

the CSA Level 3 Diploma in Debt Collection Industry SLC have a dedicated team to assist vulnerable

appropriate and from 2018 letters will include an advice insert that directs customer s to free Debt

20 Repayment Contact SLC s Repayment Staff are trained in line with the Financial Conduct Authorities principals of Treating Customers Fairly SLC s Repayment Staff are trained in line with Credit Services Code of Practice SLC s Repayment Contact Department received Company Accreditation in all staff completed the Collector Accreditation Initiative SLC s Repayment Contact Management Team have completed the CSA Level 3 Diploma in Debt Collection Industry SLC have a dedicated team to assist vulnerable customers SLC s Repayment Staff will direct customers to the free Debt Advisory services where appropriate and from 2018 letters will include an advice insert that directs customer s to free Debt Advisory services such as:

Repayment Contact The insert provided with

Loans Company standard allocation rules.

21 Repayment Contact The insert provided with letters also gives information on how to make a direct repayment: Repayments are allocated in accordance with the Student Loans Company standard allocation rules. For information on this go to

Repayment Statistics ICR Overseas Loan Overpayment Grant Overpayment 62601

315 Million owed 17/18 Loan Overpayment (still in study) 17/18 Grant

5 Million owed 17/18 Loan Overpayment 10710 customers 16.

22 Repayment Statistics ICR Overseas Loan Overpayment Grant Overpayment Customers Customers Customers c Million owed c. 315 Million owed 17/18 Loan Overpayment (still in study) 17/18 Grant Overpayment (still in study) c Million owed 17/18 Loan Overpayment customers 16.7 Million owed 17/18 Grant Overpayment 1793 customers 1.9 Million owed Customers c Million owed 7629 Customers c Million owed

23 Repayment Statistics Direct Collections ICR Overseas Grant Overpayment Loan Overpayment 17/18 Grant and Loan Overpayment 27,745,810 15,921,978 9,566,971 3,738,664 Total recovered in direct collections up to End of January 2018 is 56.9 Million

24 17/18 Changes to Overpayment Process What s Changing from 17/18 Loan Overpayments will now be recovered in all instances. Prior to 17/18 Loan Overpayments were only recovered where a student withdrew from their course Loan Overpayments will now be deducted from future funding in the same way Grant Overpayments have been while a student remained in course If a customer withdraws and returns to study, loan and grant overpayments will be recovered from future funding There is now helpful and informative information available online regarding overpayments (links below)

25 Overpayment What happens if a student leaves their course Will overpayments be recovered from other types of funding? Hardship (whilst in or returning to study) Please support us by highlighting the importance of letting SLC know as soon as possible about any change in circumstances which may affect funding entitlement. Submission of timely withdrawal, suspension and other change of circumstances notifications are essential in order to minimise the risk of overpayments students

26 Kathleen Bain Verification Operations Team Manager Angela Gibb Repayment Contact Operations Manager

Student Loans Company. Repaying your student loan

Student Loans Company. Repaying your student loan Student Loans Company Repaying your student loan Contents Page Introduction 3 How much do I repay? 4 Do I pay interest on my loan? 6 How do I repay? 7 When will I get a statement? 11 Coming to the end