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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. 

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 first repayment is made.
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

*No further cancellations will be applied

Making a repayment while still studying

If a student is currently receiving maintenance loan payments and makes a repayment to their loan, then the amount of cancellation will depend on:

  • when the repayment is made; and
  • the balance at the time of the repayment.
Example 1: a £50 repayment is made during term 2 of a student's course
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 repayment is made during term 3 of a student's course
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 repays the full outstanding amount after receiving their term 2 loan payment
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

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