CSLM16025 – SL repayments: calculation of loan repayments: when do repayments stop?

Repayments will stop in the following circumstances

• The loan is repaid
• The borrower dies
• The borrower reaches the age of 65
• The borrower receives a disability related benefit and is permanently unfit for work

In addition, if the borrower emigrates from the UK or is otherwise not resident for tax purposes, HMRC will cease to collect any Student Loan repayments and the Student Loans Company will assume responsibility.

The loan is repaid

Repayment of the loan may be by one or more of the following methods

• Deductions from earnings
• Self Assessment
• Voluntary payment to the Student Loans Company

The borrower dies

If the borrower is employed, the employer will not make Student Loan deductions from payments made after death, even if those payments relate to a period prior to death.

If the borrower self assesses, the final year of liability for Student Loans repayments will be the year in which death occurred.

If you become aware of the death of a borrower

• Notify the Student Loans Company of the date of death

The borrower reaches the age of 65

If the borrower is employed, the employer will continue to make Student Loan deductions from payments made until a Stop Notice is received from HMRC. Note: This will have been authorised by the Student Loans Company on the basis of the borrower's date of birth.

If the borrower self assesses the final year of liability for Student Loan repayments will be the year prior to the cancellation of the loan.

The borrower receives a disability related benefit and is permanently unfit for work

It will be the borrower's responsibility to negotiate cancellation of the loan with the Student Loans Company. HMRC are not involved.

If the borrower is employed, the employer will continue to make Student Loan deductions from payments made until a Stop Notice is received from HMRC.*

If the borrower self assesses, the final year of liability for Student Loan repayments will be the year prior to the cancellation of the loan.