In this guide
4. Cancellation examples
The amount to be cancelled under the scheme depends on whether the student is has completed their course or if they are still receiving maintenance payments.
Please note the cancellation is only made against the first eligible loan and not the interest that has accrued against the loan.
The tables below are an illustration of how the cancellation would be applied to a student’s eligible maintenance loan.
Making a repayment after a student has completed their course
If a student has completed their course, the amount of cancellation will depend on:
- how much is repaid; and
- the balance after the eligible repayment is made.
| First maintenance loan balance | First repayment amount* | Outstanding balance | Amount cancelled** |
|---|---|---|---|
| £200 | £200 | £0 | £0 |
| £1,000 | £5 | £995 | £995 |
| £3,000 | £1,000 | £2,000 | £1,500 |
*It is important to note that where students have more than one loan, unless they specify which loan they are repaying, SLC will apply the first repayment to the loan with the highest interest rate first. Where that loan spans more than one academic year, SLC will split the first repayment proportionately between the academic years. The proportion of that first repayment allocated to the eligible maintenance loan will determine the balance available for the cancellation applied.
**No further cancellations will be applied
Making a voluntary repayment while still studying
If a student is currently receiving maintenance loan payments, has no other maintenance loans and makes a voluntary repayment to their loan, then the amount of cancellation will depend on:
- when the voluntary repayment is made
- the loan balance at the time of the voluntary repayment.
Example 1: a £50 repayment is made during term 2 of a student's course
| Description | Amount |
|---|---|
| Term 1 maintenance loan payment | £600 |
| Term 2 maintenance loan payment | £600 |
| Voluntary payment | £50 |
| Outstanding balance | £1,150 |
| Cancellation applied | -£1,150* |
| Term 3 maintenance loan payment | £600 |
| Remaining balance | £600 |
*No further cancellation will be applied.
Example 2: a £50 voluntary repayment is made during term 3 of a student's course
| Description | Amount |
|---|---|
| Term 1 maintenance loan payment | £600 |
| Term 2 maintenance loan payment | £600 |
| Term 3 maintenance loan payment | £600 |
| Voluntary payment | £50 |
| Outstanding balance | £1,750 |
| Cancellation applied | -£1,500* |
| Remaining balance | £250 |
*No further cancellation will be applied.
Example 3: student voluntarily repays the full outstanding amount after receiving their term 2 loan payment
| Description | Amount |
|---|---|
| Term 1 maintenance loan payment | £600 |
| Term 2 maintenance loan payment | £600 |
| Voluntary payment | £1,200 |
| Outstanding balance | £0 |
| Cancellation applied | -£0* |
| Term 3 maintenance loan payment | £600 |
| Remaining balance | £600 |
*No further cancellation will be applied.