Student Loan Repayments: Who Qualifies and What You Get
Learn how student loan repayments are managed through your payroll and how to ensure your tax codes stay accurate.
This scheme manages how student loan repayments are collected from employees through their regular earnings.
Who it's for
This is for employees who have an outstanding student loan balance.
What you get
Your loan repayments are handled through an automated deduction from your pay. This ensures your loan is being paid down consistently alongside your regular taxes.
What it costs you
There is no direct cost to the employee, but it requires your employer to use payroll software that can integrate with the deduction system.
The catch to know
A common mistake is failing to update an employee's tax code once they have finished paying off their loan. If the tax code is not updated to reflect that the loan is closed, incorrect deductions may continue.
How to apply
- Ensure your payroll software is set up to handle student loan deductions.
- Verify the correct tax code for each employee with an active loan.
- Update the tax code as soon as an employee completes their repayments.
- Check the official portal for any specific administrative requirements.