GovWire

To qualify for this scheme offered by the Welsh Government you must:

• have been a full-time student
• have taken a Maintenance Loan from Student Finance Wales since academic year 2010/11
• have started repaying or made a voluntary repayment

How much of the Maintenance Loan will be cancelled

When you start repaying your student loan, the Welsh Government could cancel up to 1,500 from your full-time Maintenance Loan balance. If you take out a loan in more than one academic year, the cancellation will be applied to the first Maintenance Loan which you took out. The cancellation amount will be subject to the amount of your first repayment. Find out more at www.gov.wales/student-finance-partial-cancellation-scheme.

If your income at the moment is too low to be making repayments, youll still be able to get part of your Maintenance Loan cancelled if you start making repayments in the future.

You can only get the cancellation once. You cannot get the cancellation if you have any outstanding charges, costs, expenses or penalties in relation to your loan or if youre in breach of your loan agreement.

You must make a repayment of at least 5 to activate the 1,500 cancellation.

You dont have to be making repayments through your salary to qualify for the 1,500 cancellation, you can make a voluntary repayment of 5 to activate it.

Example

You took a Maintenance Loan of 1,000 in each year of a course that lasted 4 years, so your total Maintenance Loan balance is 4,000 plus any interest thats accrued. You make a repayment of 5 which is evenly split across your balance for each year you took a Maintenance Loan (1.25 repayment for each). Well be able to cancel 998.75 from your balance as thats the amount left over of your first Maintenance Loan balance, minus the 1.25 repayment. Your remaining balance would be 2,996.25 plus any interest accrued.

Example

You took just one Maintenance Loan of 2,500 out in the second year of a course that lasted 4 years. Your total Maintenance Loan balance is 2,500 plus any interest thats accrued. You make a repayment of 200. Well be able to cancel 1,500 from your balance. Your remaining balance would be 800 plus any interest accrued.