Student Loans: A guide to terms and conditions for EU students

2010/11

Introduction
This booklet contains important information about the repayment of Tuition Fee Loans for EU students. You must read it carefully if you are thinking of applying for a Tuition Fee Loan.

Repayment
You will normally be expected to start making repayments from the April after you finish or leave your course, provided you are earning over the relevant repayment threshold for the country you are living in at that time. Money that you earn before the April start date will not be taken into account. The Student Loans Company (SLC) will write to you before you are due to start making repayments to tell you how they will be collected. The full conditions for repaying this loan can be found in the following Regulations: If your place of study is England or Wales, the Education (Student Loans) (Repayment) Regulations 2000 as amended. If your place of study is Northern Ireland, the Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 as amended.

Living in the UK
If you are going to be living in the UK from the April after you leave university or college you will have to make repayments through the UK tax system. You can find more information about this in the 'Repayment Booklet' which is available online at www.direct.gov.uk/studentfinance-eu.

Living abroad
You must contact SLC before you leave the UK. If you plan to leave the UK after you leave university or college and will be abroad from the April you are due to start making repayments, or if you will not be paying UK tax for any reason, you will need to make repayments directly to SLC. In order to establish whether you need to make repayments, SLC will ask for information about your earnings. If it is determined that you do need to make repayments, you will be given a monthly repayment schedule. SLC will work out your monthly repayment schedule using the same principles as for those who stay in the UK. Therefore, you will still only repay 9% of your earnings over the relevant repayment threshold as specified in your contract with the Secretary of State for Business, Innovation and Skills, Welsh Ministers or the Northern Ireland Department for Employment and Learning. If you do not give us accurate and up-to-date information so that your loan can be repaid, we may make you pay a penalty charge or we could ask you to repay the loan and any interest and penalties in one lump sum.

Interest
You will be charged interest on your loan from when you receive your first payment until it has been repaid in full. The interest will be 'compounded' (that is, added to the total amount you owe) every month. The interest rate can vary from year to year and most changes are applied from 1 September each year, although changes can happen during the year too. The most accurate and up to date information on interest rates can be found at www.studentloanrepayment.co.uk/interest. Information is also published in certain newspapers as soon as the rate changes.

Thresholds
To take account of differences in living costs, the repayment threshold may not be the same as in the UK. You will find a lot of very useful information on the repayment website to help you understand the different thresholds - go to www.studentloanrepayment.co.uk. The thresholds may change depending on where you live after you finish your course in the UK. These thresholds will be updated each year to take account of price changes. SLC can give you advice on the thresholds for any country. Your income will be converted into pounds sterling and you will be advised of the amount you need to pay each month in pounds sterling. Please note that you will be responsible for any costs involved in converting the currency. You will receive an annual statement detailing any payments you have made, the interest accrued and the remaining balance of your loan.

Contacts
If you have any general questions you can call the EU Customer Services Team on 0141 243 3570. You can also write to them at: EU Customer Services Team PO Box 89 Darlington County Durham England United Kingdom DL1 9AZ. If you have any repayment questions you can call the Student Loan Repayment Enquiries Team on 0845 073 8891 or if calling from abroad on +44 141 243 3660. You can also write to them at: Student Loans Repayment Enquiries Student Loans Company Limited 100 Bothwell Street Glasgow Scotland United Kingdom G2 7JD

EU/SLTC/V10