SLC Disbursements vs Student Loans in the UK: What Is the Difference?
If you’re planning to study in the UK or you’re already a student, you’ve probably come across terms like SLC disbursements and student loans—and wondered if they mean the same thing.
They’re closely related, but they’re not exactly the same.
In this guide, we’ll break down SLC disbursements vs student loans in the UK, explain how they work, who qualifies, how much you can get, and what repayment really looks like—without the confusing jargon.
What Is the Student Loan Company (SLC)?
The Student Loan Company (SLC) is a UK government-owned organisation responsible for providing financial support to students.
It is:
- Owned by the UK Department for Education
- Funded by taxpayers
- Responsible for issuing loans and collecting repayments in partnership with HM Revenue & Customs (HMRC)
The SLC was established in 1989 and originally handled student loans alone. Over time, it expanded to include tuition fee loans, maintenance loans, and postgraduate funding.
What Are SLC Disbursements?
SLC disbursements are the actual payments made by the Student Loan Company to students (or directly to universities) to cover:
- Tuition fees
- Accommodation
- Food and living expenses
- Other study-related costs
In simple terms:
👉 Student loans are the funding,
👉 SLC disbursements are the money you receive from that funding.
Who Is Eligible for SLC Disbursements?
To qualify for SLC disbursements in the UK, you typically need to:
- Be ordinarily resident in the UK
- Be enrolled in a full-time undergraduate or postgraduate course
- Study at a UK-recognised university or college
- Meet household income requirements (for maintenance support)
Eligibility rules may vary slightly depending on your course and region.
Household Income Limits for SLC Disbursements
Your household income helps determine how much maintenance support you can receive.
Undergraduate Students
| Region | Max Household Income |
|---|---|
| England | £27,295 |
| Scotland | £25,025 |
| Wales | £26,210 |
| Northern Ireland | £25,025 |
Postgraduate Students
| Region | Max Household Income |
|---|---|
| England | £49,130 |
| Scotland | £45,800 |
| Wales | £47,945 |
| Northern Ireland | £45,800 |
Even if your income is higher, you may still qualify in special financial circumstances.
How Much Can You Borrow Through SLC Disbursements?
Tuition Fee Loans
- Up to £9,250 per year (paid directly to your university)
Maintenance Loans (Living Costs)
| Region | Maximum Amount |
|---|---|
| England | £10,836 |
| Scotland | £9,380 |
| Wales | £10,382 |
| Northern Ireland | £9,250 |
The final amount depends on:
- Where you live
- Household income
- Whether you live at home or away
When Are SLC Disbursements Paid?
SLC disbursements are usually paid in three instalments per academic year:
- Start of term
- Mid-year
- Final term
Typical payment periods:
- Autumn starters: Mid-September
- Spring starters: Mid-February
- Summer starters: Mid-May
SLC Disbursements vs Student Loans: What’s the Difference?
Although people often use the terms interchangeably, there are key differences.
Key Differences Explained
- SLC disbursements are payments made by the Student Loan Company
- Student loans can also come from private lenders
- SLC funds are paid in scheduled instalments
- Repayment only begins after graduation
- You repay only when earning above £27,295
- SLC loans do not affect your credit score
Private student loans, on the other hand, may:
- Require repayment while studying
- Charge higher interest rates
- Affect your credit rating
Types of SLC Disbursements
- Tuition Fee Loans – cover course fees
- Maintenance Loans – cover living expenses
- Postgraduate Loans – for master’s and PhD students
- Hardship or Special Support Loans – for financial difficulties
Advantages of SLC Disbursements
- Helps cover tuition and living costs
- Lower interest than private loans
- No repayment until income threshold is reached
- Automatic payroll deductions
- Allows students to focus on studying
Disadvantages of SLC Disbursements
- Loans must be repaid with interest
- Repayments can last up to 30 years
- Deductions affect take-home salary
- Long-term debt if not managed carefully
How Do You Apply for SLC Disbursements?
You can apply online through the Student Finance portal.
You’ll need:
- Personal details
- Course information
- Household income documents
Applying early helps ensure your payments arrive on time.
How Are SLC Disbursements Repaid?
- Repayment starts after graduation
- Only when earning above £27,295
- Automatically deducted from salary
- Interest rate is relatively low
- Any unpaid balance after 30 years is written off
How to Check Your SLC Disbursements
You can:
- Log in to your Student Finance account
- Call SLC on 0300 100 0600
FAQs: SLC Disbursements vs Student Loans in the UK
1. What are SLC disbursements?
Payments made by the Student Loan Company to cover tuition and living costs.
2. Are SLC disbursements the same as student loans?
Not exactly. Disbursements are payments from student loans.
3. Do SLC disbursements affect credit score?
No, they do not.
4. When do repayments start?
After graduation and once you earn above £27,295.
5. How long do I have to repay?
Up to 30 years.
Final Thoughts
Understanding SLC disbursements vs student loans in the UK can save you a lot of confusion—and stress.
While both are forms of financial support, SLC disbursements are student-friendly, income-based, and designed to support education rather than burden graduates.
If you’re eligible, they remain one of the safest and most affordable ways to fund higher education in the UK.
