UK Government Launching A New Online Student Loan Repayment Platform This Year
02 Jan 2020
Approx Reading time: 3 minutes
- The UK is launching a new online service for student loan repayments this year.
- The new service would allow more up-to-date information pertaining to student loan balances compared to the existing system.
- The move will help avoid the many instances whereby graduates ended up overpaying their student loan balances.
It is about to become much easier for UK university graduates to manage their student loans in the country as, according to the Department of Education, the government is going to launch a renewed online repayment option in 2020 that would allow them to view more updated information about their balance, whenever needed.
This step has been taken to modernize the repayment system being used by the Student Loans Company, or SLC.
According to comments made by Gavin Williamson, the Education Secretary, after this online system is launched, those with student loans would find it much easier to manage their outstanding student loans.
There are many instances whereby people end up overpaying their student loans, due to the fact that their payment method is salary deductions. Hence, the government is encouraging student loan borrowers to change their payment method to direct debit as they approach the conclusion of their student loan.
Chris Skidmore, Universities Minister, has remarked that the move to modernize the student loan system was much needed considering the increasing number of people seeking university education in the UK, and consequently an increasing number of people seeking a student loan. According to him, this system would provide them with easier access to the most recent information that would help when it’s time to make a repayment.
Skidmore also encouraged all student loan borrowers to use the new system, and also to opt for the direct debit mode of payment when the loan is about to culminate, to make the entire process much smoother and to ensure they don’t overpay on their loan obligation.
The SLC already does operate a website which allows borrowers to make repayments online, but the Department of Education says this new system would have more current information for graduates compared to the existing system.
Graduates will probably see changes in April of this year when their first annual statement is delivered online, although a paper alternative may still be used if needed. Contributions will be 9% of all income earned above £26,575, from April 2020 onwards. The online account already reveals balance and allows online repayments, but the new system would provide weekly updates coming in from tax records being maintained by the government.
Also Read: Venmetro Loans Review of 2020
The annual paper statements would mostly be replaced by this new system, as per the Department of Education. But in case someone prefers the paper statements, that option will still remain available.
University education in the UK can cost an annual £9,250 on average, and many students supplement this expense with government loans. From 2020 April onwards, only those graduates who are earning more than £26,575 would be required to make repayments.