Cancelling a student loan
The SLC can cancel any remaining student loan plus any interest if the client:1Reg 8 The Repayment of Student Loans (Scotland) Regulations 2000 •dies before paying the loan off; or
•permanently cannot work due to a disability and gets a disability-related benefit (eg, adult disability payment); or
•took out their first student loan before 1 August 2007, it is cancelled when the client turns 65 or 30 years after they became eligible to repay as long as the client is up to date with repayments; or
•took out their first student loan after 1 August 2007, it is cancelled 30 years after they became eligible to repay as long as they are up to date with repayments
Getting a student loan cancelled if the client permanently cannot work due to a disability
A written request for a loan to be cancelled must be sent to the SLC. It must include the customer reference number and copies of letters from:
– a doctor, consultant or psychiatrist stating the client is permanently unfit for work, dated within the last six months; and
– Social Security Scotland or the DWP showing the client gets a disability-related benefit such as adult disability payment or industrial injuries benefit.
If the client themself cannot report that they are unfit to work, information and evidence can be accepted from a third party. The SLC can only communicate directly with the third party if they have power of attorney. If no one has power of attorney, the SLC writes to a third party care of the customer’s address.