In this guide
3. How much of the amount owed will be cancelled
The Student Loans Company will calculate the cancellation as soon as the first repayment is made on the eligible maintenance loan.
Important to note. The cancellation only applies to the first eligible maintenance loan and only applies to the loan balance, not to any interest added to the loan.
What happens depends on the loan balance at the time of the first repayment:
- If the full eligible loan is repaid in one payment, the cancellation applied is zero (£0). The student will not be eligible for a further cancellation.
- If the eligible loan balance is less than £1,500, a cancellation up to the amount of the outstanding balance is applied. The amount of cancellation depends on how much is repaid in the first repayment. The student will not be eligible for a further cancellation.
- If the eligible loan balance is more than £1,500, a cancellation of up to £1,500 is applied. The amount of cancellation depends on how much is repaid in the first repayment. The student will not be eligible for a further cancellation.