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HMRC internal manual

Collection of Student Loans Manual

HM Revenue & Customs
, see all updates

about CSL: overview of student loans: role of the borrower

Who is a borrower?

A borrower is a person who

  • As a student received an income contingent loan from August 1998


  • Has now graduated, or otherwise completed or ended a course of higher education

How is a borrower identified and matched?

The Student Loans Company

  • Identifies borrowers who have graduated, completed or otherwise ended their course
  • Calculates the earliest date upon which repayments may commence


  • Sends details of the borrowers electronically to HMRC

From October 1999, regular matching exercises take place in which the information sentby the Student Loans Company, (normally including a verified NINO), is automatically matched against the records held on HMRC PAYE and SA computers.

Borrowers working or living abroad

If the borrower is treated as not resident for tax purposes repayments will be assessed by the Student Loans Company and any repayments will be made directly to them. HMRC willnot be involved in these cases unless the borrower becomes resident in the UK.

Handling borrowers’ queries

The Student Loans Company should always handle a query from the borrower concerning the

  • Administration of the loan


  • Balance on the loan account

HMRC does not hold details of the borrower’s loan(s). HMRC’s responsibilities arelimited to the collection of loan repayments.

If you receive a query from the borrower that is not proper to HMRC

Refer the caller to the Student Loans Company. For details of the Student Loans Companyaddress and Help Lines see CSLM1010

Commencement of repayments

A borrower will not start to repay a loan until the April following graduation orotherwise leaving a course of higher education. The earliest repayments for this type ofloan were due from 6 April 2000.

Repayments will commence only if the following conditions are satisfied

  • The borrower has started work, or receives a Self Assessment return


  • The earnings for NIC purposes in any tax year, are in excess of the annual threshold, or the pro - rata equivalent during a pay period


  • The borrower has no employment but has unearned income in excess of the threshold for the year