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Student Loan Company

Volume 450: debated on Wednesday 11 October 2006

To ask the Chancellor of the Exchequer how regularly moneys collected on behalf of the Student Loan Company (SLC) by the Inland Revenue are passed onto the SLC; and how soon after moneys are collected by the Inland Revenue those sums start counting against each individual’s SLC balance. (92218)

HM Revenue and Customs (HMRC) does not make payments to the Student Loans Company (SLC). Employers deduct student loans repayments from earnings exceeding £15,000 during the year and send these to HMRC who make payments to the Department for Education and Skills (DfES) every quarter. Borrowers get credit for repayments at the date they were made and no additional interest is charged as SLC credits their accounts retrospectively to the tax year in which deductions were made from their earnings.