SLC Disbursements Explained
- Georgia Petrie
- Jan 7
- 8 min read
Updated: Jan 16
Everything you need to know about SLC disbursements.
University can be challenging enough as it is, but throw in student loans and SLC disbursements to the mix, and you'll be left even more puzzled.
When you've barely been taught anything about finances at school, heading off to university can cause some anxiety around the financial side of things. Student loans, disbursements, SLC, SFE — what does it all mean?
Let us take the confusion out of student loans for you.
Here's what you need to know about the SLC and disbursements before you head off to college or university.
What is SLC?
SLC stands for the Student Loans Company. They are a non-profit making government-owned organisation that administers loans and grants to students in the UK.
The SLC is where you'll expect your student loan to come from (maintenance and tuition loans). It's handy to note that whenever your student loan does drop into your account, the payment will be labelled as 'SLC Disbursements' or something similar — so double-check this when your instalment drops to ensure it's legit.
The SLC administers student funding on behalf of the Department for Education, having been set up in 1989 to manage the student loan system in the UK, including bursary payments on behalf of many UK Higher Education providers.
SLC disbursement meaning
Disbursement means paying out money from a fund. In this case, the Student Loans Company is disbursing money from a fund to UK students who have enrolled in a university. The SLC is funded by the UK Government, and its function is to pay loans to students.
The SLC is also responsible for collecting student loan repayments, which you can find more about on our blog, as well as a brief overview further down in this article.
If you're a Scottish student, however, the Student Awards Agency Scotland (SAAS) will assess your student finance and figure out how much you're eligible for. The SAAS does not pay the student loans, though.
SLC responsibilities for undergrads in the UK
If you're a student in England and Wales, then your loan eligibility will be processed by Student Finance England (SFE) and Student Finance Wales in partnership with the SLC.
If you're a student from Scotland, the Student Awards Agency Scotland (SAAS) will assess your student finance applications and review how much you'll get for the academic year. Your payments themselves will come from the SLC.
The Student Loans Company's responsibilities include managing the full end-to-end 'apply, assess, pay and repay' process for undergraduates in England and Wales. The SLC provides the payment and repayment parts of this service for Scotland and Northern Ireland, as well as maintaining the assessment systems and online application portals used in Northern Ireland.
SLC maintenance loans versus tuition fee loans
You'll get two types of loans from the SLC: maintenance loans and tuition fee loans. Tuition fee loans are given to cover the cost of your uni tuition as charged by your university for your course(s). Your tuition fee loans from the Student Loans Company are paid directly to your university, so you won't see this money enter your bank account.
Maintenance loans, on the other hand, will go into your account to help support you during your time in higher education. For most UK students, the maintenance loan will be the biggest source of income while at uni. It should cover your accommodation and living expenses like food, travel and course necessities.
Unlike tuition fees, which are fixed, maintenance loans are mainly dependent on your household income – usually based on your parent(s) income and other factors like where you'll live during your course.
When are SLC disbursements paid?
SLC disbursements of your maintenance loan will be paid to you once a term (roughly), if you're studying in England, Wales or Northern Ireland – with the total for each academic year split into three equal instalments and paid directly into your bank account.
In Scotland, SAAS student loan payments are paid monthly, rather than in three equal instalments like the rest of the UK, and it'll typically be around the 7th of each month.
You should receive a payment at the start of each term, with the intention of allowing students to learn more financial responsibility rather than getting a large lump sum at the start of the year.
The exact date that your student finance disbursement from SLC will depend on your course and your uni. Generally speaking, though, you can expect your student finance payment to come in around the end of September/start of October.
Another SLC payment will hit your account at the start of January, and the last will be in April. To track the exact dates, log in to your Student Finance account to see the schedule.
How are SLC disbursements in the UK paid?
In the UK, Student Loans Company (SLC) disbursements are usually paid in the following way:
Tuition fee loan
Paid directly to your university or college.
It's released in three instalments, usually at the start of each term.
You don't handle this money — it never goes into your personal account.
For Scottish students studying in Scotland, undergraduate tuition is paid for by SAAS
Maintenance loan
Paid directly to you, the student.
Sent to your bank account:
In three instalments around the start of each term (for students in England, Northern Ireland and Wales)
Monthly (typically the 7th of each month), beginning with a double payment at the start of the academic year around September/October
You'll receive a payment schedule in your Student Finance online account showing the exact dates and amounts.
To get your maintenance loan on time, you must register/enrol with your university. They confirm this with the SLC, which triggers the payment. Normally, the amount you get is based on your household income.
How do SLC loan repayments work?
You'll only start repaying your student loan after you've graduated and you're earning above the repayment threshold — currently this is £28,470 for Plan 2 loans, but from April 2026 this will be £29,385 a year (that's about £2,448.75 a month or £565 a week). After this change, it's been said that this figure will be frozen until April 2030.
The Plan 5 loan applies to students who started undergraduate courses in England from the 1st of August 2023. Their repayments will begin in April 2026, and the threshold for the 2026-27 tax year will be £25,000 per year.
You've got 30 years to repay your Plan 2 loan, and whatever's left after that is written off. Yep, gone. However, for Plan 5 loans, these are written off 40 years after April when repayments are first due.
Interest is added to your loan, and the total you repay depends on your income and the type of loan you took out. You can also make extra voluntary payments anytime. If you're repaying manually (like via direct debit), make sure you set it up on time to avoid late fees.
Plan type | Yearly income threshold | Monthly income threshold | Weekly income threshold | Course start date and type | Applicable loan provider/country |
Plan 1 | £26,065 | £2,172 | £501 | Courses started before 1 Sep 2012 in England or Wales All courses funded by Student Finance Northern Ireland | Student Finance England (pre‑2012), Student Finance Wales (pre‑2012), Student Finance Northern Ireland |
Plan 2 | £28,470 | £2,372 | £547 | Courses starting 1 Sep 2012 – 31 Jul 2023: undergraduate, PGCE, Higher Education Short Course and Advanced Learner Loans in England For Wales: undergraduate or PGCE started on or after 1 Sep 2012 | Student Finance England & Student Finance Wales |
Plan 4 | £32,745 | £2,728 | £629 | All undergraduate and postgraduate courses funded by the Student Awards Agency Scotland (SAAS) | SAAS – Scotland |
Plan 5 | £25,000 | £2,083 | £480 | Courses starting on or after 1 Aug 2023 (undergraduate or PGCE) | Student Finance England only |
Plan 3 (Postgraduate Loan) | £21,000 | £1,750 | £403 | Master’s or doctoral loans (England and Wales) | Student Finance England & Student Finance Wales |
You’ll repay either:
9% of your income over the threshold if you’re on Plan 1, 2, 4 or 5
6% of your income over the threshold if you’re on a Postgraduate Loan plan
If you dip below that threshold at any point, your repayments stop automatically and only kick back in when you're earning enough again. If your income changes, so will your repayment amount — no need to do anything manually.
SLC disbursements payment refunds
Since May 2024, as part of ongoing improvements to the repayment service, the Student Loans Company (SLC) has offered a Digital Refund Service for customers who over-pay. That means if your student loan accounts are in credit, you can easily request a refund online. Student loan refunds are paid directly into customers' bank accounts and show as 'SLC Receipts' on bank statements.
There are several situations where you can ask for a refund. We've listed a few below:
Your income was below the threshold for repayment
You started making payments before you needed to
You've overpaid by mistake or because you were placed on the wrong repayment plan by your employer
If you've overpaid and the Student Loans Company hasn't contacted you, you can reach out to them and ask for a refund.
Can you suspend your SLC disbursements?
If you're ever in a situation where you need to pause your student loan payments, such as being seriously ill, you're able to suspend them. During this time, you can continue receiving your maintenance loan or grants for up to 60 days and apply for extra funding if needed.
You'll need to get in touch with the service provider of your student finance:
Student from England — contact Student Finance England (SFE)
Student from Scotland — contact SAAS
Student from Wales — contact Student Finance Wales
Student from Northern Ireland — contact Student Finance NI
You can only suspend your SLC disbursements if you suspend your studies, not drop out of the course. Typically, you'll be able to postpone your SLC disbursements until you decide to return to your studies.
If you have to suspend your studies due to a chronic illness or disability, you may be eligible for the Disabled Students' Allowance (DSA). This may be able to help support the study-related costs of having a mental illness, long-term illness or other disability. You can get DSA as an addition to any other student finance you may get.
This financial support is not based on household income like maintenance loans. It is based on your individual needs. You do not need to pay back any DSA loans. The 2025-26 academic year allows students (undergrad and postgrad) to get up to £27,783 a year for support.
Things DSA can pay for:
specialist equipment such as a computer
non-medical helpers, such as a sign-language interpreter or note taker
extra travel to attend studies
any other disability-related study support, like print copies of documents
You can find more information on student finance and loans in our guide.
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