Student Maintenance Loan Overpayment

Hanniebis

Hi all. Any advice/support on this one please?

This time last year I was in hospital with glandular fever, suffered from post-viral fatigue and was finally forced to leave Uni and suspend my studies for a year (in March of this year) due to general physical illness and severe clinical depression and anxiety. After 6 months of treatment, living with my mother in London, I decided that I wanted to move on with my life, particularly as my fiance lives in Edinburgh and I was almost never seeing him, and I felt so much better and stronger than before.

I moved into a flat in Edinburgh with my fiance at the end of September, where I am now. Upon leaving Uni I already had a fairly sizable student overdraft with HSBC. I recieved income support for some of the time I was unwell over the summer, but this was only around £40 a week, and only from June onwards, most of which I desperately saved so that I could visit my fiance occasionally.

I was paid my final loan maintenance installment around the time I left, at the end of March. When I left Uni, I was told that the SLC had been contacted about the suspension of my studies. Only now, 8 months later, have I heard from the SLC regarding all of this! They have sent me a letter and a re-calculation of maintenance loan payable for the year 07/08, and decided that I was only due around 2900 for the whole year in maintenance loan, rather than around 4200, the original amount. It states in the letter that any overpayment may need to be paid back to them.

I am looking for a job (which is hard given my recent illness and time off work/study) and have decided not to finish my degree, however there's absolutely no way I can afford to pay the SLC £1300 right now! I am barely surviving on the benefits I have at the moment whilst job searching, and once I have a job (given the type I'm applying for) doubt that there will be much left over after rent, bills, etc.

I've discovered that discretion can be used regarding repayments like this depending on a student's financial circumstances, particularly where illness is involved. However, if they decide to demand the money back, the absolute most I am going to concede to is adding the amount onto my student loan and paying it off that way. The last year has been the hardest of my life, particularly November 07 - February 08, where I was so physically ill I found it hard to walk up the stairs, and March through the early summer where I was so depressed and worn out I couldn't get out of bed (very unlike me!).

I guess I'd just like to know that people agree with me - in that despite the possible consequences, it's the right thing to do to tell the SLC to !!!!!! off if they really do demand that money now. I mean, I couldn't pay it even if I wanted to! I find it shocking and upsetting that I've not heard from them about this until now considering my circumstances.

Oldernotwiser

Whilst I have sympathy for your illness, you took your last Student Loan payment after you had actually left your course, which seems to me to be false pretences and I think you'll find that this will lose you your ability to negotiate heavily. You should inform the SLC of your current financial postion and try to arrange a payment plan, based on an amount that you can afford to repay, increasing it when you find a job.

I really don't think that you're going to get anywhere by being bolshy with the SLC as you seem to be so firmly in the wrong here; play the sympathy card and they should allow you to repay this money at a rate you can afford.

argood

Just to follow up Oldernotwiser's post, SLC will not demand repayment of your overpayment in full. Honestly, they're nice people. Just tell them your story, tell them your current financial situation and they'll understand.

Unfortunately you can't add the overpaid amount to the outstanding balance of your loan, it'll have to be paid off seperately. You can repay by monthly direct debit or standing order and the minimum they'll accept per month is £5.00 (which is pretty reasonable).

So, give them a phone. You shouldn't have to wait too long to get through if you call the number on the letter which should be 0141 243 3576.

I hope this helps.

mellymeep

Are you going to go back to studying anytime? I had an overpayment of my maintenance loan because I had to leave uni half way through the year due to depression too then transfer onto a new course in 2008. Basically what the SLC did was take off the grant money I got from my grants I was getting this year, and the maintenance loan is added to what I will owe at the end of my time at uni.

Hanniebis

Oldernotwiser wrote: »

you took your last Student Loan payment after you had actually left your course, which seems to me to be false pretences

Technically, I didn't choose to take my final payment whilst not studying because I didn't know when I applied for the loan that I would be ill! The payment came into my bank account a few days after I left University. When I left, I was told the SLC would be contacted regarding the suspension of my studies. I assumed that as the SLC were informed of my situation, they would contact me if I needed to repay them. I think 8 months is pushing it a bit in terms of a reaction. My whole life and financial situation has changed in that time period!

I'm annoyed at how impersonally I've been treated by the SLC in general; last year, despite sending in my yearly application very early and correctly, there were horrendous errors on their part in getting loan payments to me for the first two months, which meant that I was forced to drastically rearrange rent payments for accomodation. I didn't receive letters that I should have, details were wrong despite the fact that I always informed them immediately of any changes, and at one point I received 3 completely different payment schedules in the space of two weeks. I know this is unrelated to my current situation, but I thoroughly dislike the way they have treated me thus far.

Thank you all for the advice and information (mellymeep - I'm not returning to studies, but that's a good point and would've been worth finding out about if I had). If they decide to ask me to repay (and it sounds like they may do) do any of you know what kind/depth of information they're going to want about my current financial situation?

student_advisor

To be fair you also have a responsibility to inform the SLC/SFD if you leave a course - in fact you are jointly responsible with your institution.

It seems to be a bit hit and miss as to whether you are asked to repay immediately or not. I left on the second day of the second term and received the whole of my second payment but have not been asked to pay this off separately to my other outstanding loan. However, I deal with clients who have been asked for immediate repayment, particularly when they are returning to studies.

If you are unhappy with any treatment you have received from the SLC, I would recommend making an official complaint - they have actually produced a leaflet on how to do it!

If you are contacted to repay your overpayment, you can argue about your circumstances and would be required to provide doctors notes etc, if you want to argue that you are not uina position to pay, you will have to provide many details of your income and expenditure to prove that you cannot make payments.

I wouldn't bother contacting them and asking them if they want any money back though!

Oldernotwiser

Hanniebis wrote: »

Technically, I didn't choose to take my final payment whilst not studying because I didn't know when I applied for the loan that I would be ill! The payment came into my bank account a few days after I left University.

Nothing stopped you paying it back immediately you received it. I don't understand why should you think that you need to wait to be asked for it back and you still went and spent it anyway even knowing you weren't eligible to keep it.

As far as your question "do any of you know what kind/depth of information they're going to want about my current financial situation?" I suggest that you're completely honest with them and don't try anything dodgy!

TDQO

Oldernotwiser: Stop attacking the OP. There is no need for your narkiness. The whole ethos of this forum is to HELP people, irrespective of your personal opinion of her situation. You may think she is in the wrong but posting that is completely irrelevant. If you don't have any constructive advice then don't bother posting.

OP: As a student I fully understand just how confusing and difficult the SLC are to deal with, they really do suck at their jobs! Do as has been suggested and explain your circumstances to them and organise a payback scheme where you pay it back slowly over a long period, they're normally pretty good at this. Dozens of my friends have had similar problems so don't get yourself too stressed about it!

Oldernotwiser

TDQO wrote: »

Oldernotwiser: Stop attacking the OP. There is no need for your narkiness. The whole ethos of this forum is to HELP people, irrespective of your personal opinion of her situation. You may think she is in the wrong but posting that is completely irrelevant. If you don't have any constructive advice then don't bother posting.

Sorry, I disagree. She needs to accept that she's in the wrong to be able to deal with the situation successfully. Going in with all guns blazing will have a detrimental effect on things and get her into more trouble. People need to have their eyes open to the realities of the situation and this won't happen by people just saying "there, there, aren't the SLC nasty". There are different ways of being constructive and I haven't noticed you offereing any advice at all!

Hanniebis

Oldernotwiser:

I was told by my University that the SLC would be contacted regarding the suspension of my studies. I was never advised that I needed to contact them myself. Please remember, the state of my health at that time was atrocious; I could hardly talk to family about my situation and how I was feeling without completely crumbling, was almost unable to get out of bed and unable to do anything. I have a very proactive approach to life and this is completely unike me, but months of post-viral fatigue along with repeated infections and generally feeling like I had the flu had got me pretty much ready to give up on life. If you've ever suffered from severe clinical depression or know someone who has, you'll know that this isn't an exaggeration. Believe me, my eyes are open.

Whilst I honestly appreciate your advice, I can't help getting a fairly bitter tone from your posts. It's not as if I went out and spent this money on a new car! Even along with some later income support payments, my income per week was low and only spent on essentials.

What I'm upset about is the fact that the SLC took so long to contact me if they already had the information they needed. If I had been told the payment would need to be paid back 8 months ago, I would have immediately understood and conceded. No action of any kind was taken to discover why my studies had been suspended or why I was unwell and unable to contact them personally.
And then 8 months down the line they send me a letter out of the blue informing me that I may need to repay £1300. Just because something is right, doesn't make it fair; I'm not going in 'guns blazing', I'm simply speaking up for a girl who, 8 months ago, was having severe panic attacks at the thought of calling someone, let alone arranging her finances. I'm sorry if that sounds extreme or pathetic - but it is the truth. I'm just sad that no attempt was made to discover my situation. Surely this must happen to other people diagnosed with depression and anxiety?

Student_Adviser: Thank you for the info regarding making a complaint. I may look into this, but only after the current situation is over and I receive more information regarding repayments.

TDQO: Many thanks for your sympathy and advice. It's good to know that you've had friends in the same/similar situations. If, after I've explained my circumstances, they're still wanting the repayments, I think a payback plan is my only option, hopefully they'll not mind if it's fairly low for the time being.

Oldernotwiser

Hanniebis wrote: »

Oldernotwiser:

I was told by my University that the SLC would be contacted regarding the suspension of my studies. I was never advised that I needed to contact them myself. Please remember, the state of my health at that time was atrocious; I could hardly talk to family about my situation and how I was feeling without completely crumbling, was almost unable to get out of bed and unable to do anything. I have a very proactive approach to life and this is completely unike me, but months of post-viral fatigue along with repeated infections and generally feeling like I had the flu had got me pretty much ready to give up on life. If you've ever suffered from severe clinical depression or know someone who has, you'll know that this isn't an exaggeration. Believe me, my eyes are open.

Whilst I honestly appreciate your advice, I can't help getting a fairly bitter tone from your posts. It's not as if I went out and spent this money on a new car! Even along with some later income support payments, my income per week was low and only spent on essentials.

What I'm upset about is the fact that the SLC took so long to contact me if they already had the information they needed. If I had been told the payment would need to be paid back 8 months ago, I would have immediately understood and conceded. No action of any kind was taken to discover why my studies had been suspended or why I was unwell and unable to contact them personally.
And then 8 months down the line they send me a letter out of the blue informing me that I may need to repay £1300. Just because something is right, doesn't make it fair; I'm not going in 'guns blazing', I'm simply speaking up for a girl who, 8 months ago, was having severe panic attacks at the thought of calling someone, let alone arranging her finances. I'm sorry if that sounds extreme or pathetic - but it is the truth. I'm just sad that no attempt was made to discover my situation. Surely this must happen to other people diagnosed with depression and anxiety?

quote]


I have myself had to leave a career after suffering from depression, so I do know what it's like. However, I still don't think it excuses you from spending money to which you weren't entitled and that isn't bitterness on my part, just basic honesty. I really can't see why you should expect the SLC to be interested in your reasons for leaving university; they're a provider of funding, not a charity.

Anyway, enough of this; contact them and arrange a payment plan. I'm sure you'll find them quite reasonable and hopefully you may feel differently about them then. However, don't forget, if they allow you to repay this in installments they are doing you a favour, so be grateful.