Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the reliability of income data used by the Student Loans Company.

The Student Loans Company (SLC) uses income data provided by HMRC, which is an effective way to ensure that repayments are linked directly to earnings for borrowers resident in the UK. Employers and self-employed borrowers provide income and student loan information to HMRC alongside tax reporting. HMRC then report this to the SLC.

The amount that borrowers are required to repay is calculated on the basis of income subject to National Insurance contributions (for UK-resident PAYE borrowers) or income subject to tax (for borrowers in Self-Assessment).

Borrowers residing overseas for more than three months, whether permanently or temporarily, are required to repay directly to the SLC, as they are outside the UK tax system. Borrowers must complete a yearly Overseas Income Assessment Form, including evidence of earnings (such as payslips or bank statements) or other income. The SLC then establishes a 12-month repayment schedule based on the borrower’s projected gross annual salary.