The online repayment service was announced last year and now it is live, graduates will be able to better manage their repayments, particularly if they’re close to clearing the balance.

Previously, graduates received an annual statement by post containing information which could have been out of date due to the infrequent data sharing between HMRC and the SLC.

This could lead to over-repayments on student loans. Going forward, graduates will no longer receive an annual paper statement as they will be able to view their balance online.

It will also mean graduates can switch payments to direct debit as they reach the final stages of their loan repayments, update contact details and make one-off payments.

Universities minister, Michelle Donelan, said: “I am pleased that millions of students and graduates will benefit from the new service, making it easier for them to keep track of their student loan repayments.

“Our student loan system helps anyone with the talent and drive to benefit from university, and we have invested in these improvements to make it as simple and easy for people to use.”

Steven Darling, director of repayments strategy at the SLC, said: “Our goal is to make student loan repayment as simple and easy as possible. In these difficult times, most customers want to keep track of their finances and our new online repayment service has been designed for and by customers to make it easier to do so.”

Graduates can sign in to their account at www.gov.uk/slc/signin by using their 11 digit customer reference number and password.