Repaying the loan

If you apply for a BA loan, you must agree how you are going to replay the loan as part of your acceptance agreement, loans are usually repaid over a 12 month period, however can be extended to 18 months in exceptional circumstances and repayments can be made in one of two ways
Repayments can either be:
? deducted automatically from benefit in payment or
? paid directly by the customer at an agreed amount (depending on applicant?s income and expenditure).

If you stop claiming Universal Credit to move into work and you still have an outstanding loan, you will be responsible for contacting the DWP and making arrangements for repaying the loan directly to them at a rate that you both agree is reasonable, the DWP will contact you about the Loan when you close you claim to benefits and will send you a letter with information on how much of the loan is still outstanding and giving you details on how you can repay the loan.