student loan overpayment

danfair

my wife attended university last year and earlier this year ,but she had to drop out.she recieved student loans from the student loan company.she is now unemployed and i am the only one earning.she has had a letter from s.l.c saying that she was overpayed by nearly £5000 , and they may take further action to obtain full recovery of this overpayment.she is been given till 5 jan 2010.can they do this?

Poolie

Yes as this will be the grant overpayment which becomes payable straight after the student leaves the course and SLC have been informed by the University.

Taiko

If she's withdrawn from a course, then yes it can be. It's in the T&C's that she signed, and a student is only entitled to support whilst in attendance on a designated course of higher education.

The £5000 figure seems a lot, so I'm going to assume she withdrew but didn't inform the SLC herself like she is meant to, again this being in the T&C's.

You should've been sent a letter with a number for debt recovery. They will allow you to make repayments at affordable amounts each month, but it's by negociation only.

Poolie

The actual student loan which is repayable via salary will not become repayable till April 2010 since she has withdraw so this must be a grant overpayment.