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Government to launch new student loan repayment system in 2020

Change comes as tuition fees stand at £9,250

Alison Kershaw
Monday 30 December 2019 07:48 GMT
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Graduates can now switch from having repayments deducted from their salaries each month
Graduates can now switch from having repayments deducted from their salaries each month (Getty)

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Graduates will be able to check up on their student loans online under an overhaul of the accounts system, the government has said.

A new online repayment service is due to start in 2020, which will allow former students to get up-to-date information and manage their student loan balance.

Universities minister Chris Skidmore said he is also urging graduates to switch from having their payments automatically deducted from their salary when they are nearing the end of their loan to direct debit to help stop over-repayments.

He said: “With more and more people enjoying the benefits of a university education, it’s only right that graduates have easy access to the information they need about repaying their student loan.

“The government is investing in the student loans system to make it as simple and easy for people to use as possible. I urge all graduates to use this new service and to join the direct debit scheme as they approach the end of their loan to ensure a smooth end and not repay more than they should.”

The overhaul is part of improvements aimed at modernising the Student Loans Company repayment system, the Department for Education (DfE) said.

University tuition fees now stand at up to £9,250 a year in England, and students are able to get a government loan to cover the cost, as well as borrow money for living costs.

From April next year, graduates will start paying back their loans once they are earning £26,575 a year.

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