A new online student loans repayment service will go live sometime in 2020 to help graduates better see and manage more up to date information about their student loan balance.
The overhaul is part of improvements to modernise the Student Loans Company repayment system, as only the annual paper statements were previously available.
The new update will largely replace the annual paper statements with easily accessible monthly updates online.
Education Secretary Gavin Williamson said: “Student loans can remain part of graduates’ lives for many years, so it’s only right we do all we can to improve the system for them. These changes will make it easier for students to understand their balance, manage their loan and avoid over-repaying.”
From April 2020, graduates will only need to start paying back their loans once they earn £26,575 and the government said that this system should help graduates keep more money in the early stages of their careers.
Before the system overhaul, students had to begin repaying their loans when they earned £25,725 per year.
Universities Minister Chris Skidmore is also calling on graduates to switch to direct debit towards the end of their loan rather than continue with automatic deductions from their salary.
Skidmore said: “With more and more people enjoying the benefits of 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 government announced the change on December 30, 2019, but have yet to publish the date the system will be available.
Emma Farr
Balsam Maki
Denise Meriche