The Student Loans Company is a government-owned agency that was established in 1989 and is responsible for managing all loans and grants to students in universities and colleges in the United Kingdom. In recent years, the United Kingdom has shifted away from grants and towards income-contingent loans for students, primarily due to their lower public cost (Figure 3.1). Relative to grants, loans may also make students more responsive to market signals in their degree selection, as most students must eventually repay the money, unlike with grants. In 2015, the government announced it would end grants for students from low-income households, but would raise total financial support via income-contingent loans.