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<p>We want a sustainable student finance system that is fair to students and taxpayers
– and which continues to enable anyone with the ability and the ambition to benefit
from higher education to do so. The student finance system will continue to protect
borrowers, including women on maternity leave, or any person on any form of parental
leave, if they see a reduction in their income.</p><p>Student loan repayments are
made based on a borrower’s monthly or weekly income, not the interest rate or amount
borrowed, and no repayments are made for earnings below the relevant repayment threshold.
Repayments are calculated as a fixed percentage of earnings above the relevant repayment
threshold - if a borrower’s income drops, so do their repayments. Any outstanding
debt, including interest accrued, is written off at the end of the loan term with
no detriment to the borrower. No commercial loans offer this level of borrower protection.</p><p>If,
at the end of the year, the borrower’s total income is below the relevant annual threshold,
they may reclaim any repayments from the Student Loans Company made during that year.</p>
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