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Withdrawal from uni- overpayment of grant

Hi,

I withdrew from uni at the end of april this year for personal reasons. The Student Loans Company have already paid the maintenance loan and grant to which I was entitled. However, last week they sent me a letter saying that I now owe them £950 as a grant overpayment. For one I cant pay this as it has already been spent on paying for my accommodation which I am liable for until september. Also the grant was advertised as non-repayable and nowhere in the terms and conditions does it stipulate that I have to pay it back- under any circumstances. Do they have the right to ask for it back and if so should I have to pay it immediately (as they are asking me to) or should I have the opportunity to start paying when I earn over £15000 a year as with the rest of my loan? I have rang them and have been told I must pay at least half back by next week.
Any help is appreciated
Thanks

Comments

  • gulife
    gulife Posts: 94 Forumite
    Hi,

    I withdrew from uni at the end of april this year for personal reasons. The Student Loans Company have already paid the maintenance loan and grant to which I was entitled. However, last week they sent me a letter saying that I now owe them £950 as a grant overpayment. For one I cant pay this as it has already been spent on paying for my accommodation which I am liable for until september. Also the grant was advertised as non-repayable and nowhere in the terms and conditions does it stipulate that I have to pay it back- under any circumstances. Do they have the right to ask for it back and if so should I have to pay it immediately (as they are asking me to) or should I have the opportunity to start paying when I earn over £15000 a year as with the rest of my loan? I have rang them and have been told I must pay at least half back by next week.
    Any help is appreciated
    Thanks

    SLC are not in charge of your grant, so first of all, confirm exactly why they are sending you a letter reclaiming money. Is it a loan overpayment? If it is, then you can repay it back when you start earning over £15K.

    Otherwise, contact SAAS to confirm if it is a grant overpayment. If it is, then you DO have to repay it back. But you can take out a student loan to cover this cost.
  • EmmaJ_3
    EmmaJ_3 Posts: 160 Forumite
    I withdrew from uni for a year in January a few years ago, for health reasons, and restarted the next September. I'd already received the January loan installment and was not asked to repay it, but did not receive the April installment.

    I'd go to your student finance office (probably in the students union) and ask for their help in clarifying the situation.
  • The LEA *can* ask for that money back. It is paid to you assuming you study, so if you don't study for the whole of the year, they can ask for it back. However, some LEAs will not ask for it back and ALL have the discretion to waive it. Contact them, letting them know the circumstances of why you withdrew and they may waive it. If the refuse to waive, get debt advice, either from yout Students' Union or local CAB https://www.adviceguide.org.uk, complete a financial statement and make an offer to repay at an amount you can afford.

    You do not have the right to pay back under the same conditions as your loan, because you were never entitled to the money in the first place (it was given to you assuming you would complete the year), if you see what I mean. They are asking for the money back from that part of the year that you did not study.

    Hope this helps
  • bestpud
    bestpud Posts: 11,048 Forumite
    Yes, grants ARE repayable if you leave your course. I don't know about loans though.

    I can't see why they wouldn't want it back really - what would stop people attending uni for a few months just to get some 'free' money otherwise?

    I'm not saying for one minute that applies here though - I want to make that very clear!!!

    I'm just pointing out why they would be likely to reclaim grants!

    Student grants are for current students to help with living costs etc.

    Leaving students would presumably be expected to work or claim other entitlements, depending on their circumstances for leaving uni?

    Hth

    Bestpud
  • Allsetuk
    Allsetuk Posts: 14 Forumite
    unbeleivable the student loans people reckoned they overpayed me by 3600 this april, from 2005, things are meant to be in place to stop this happening but the area i live went onto a scheme that meant the people originally dealing with my case were not anymore, loads of paperwork was lost and eventually after months of discussions they reduced the overpayment to 1500 , this still left me with no means to pay my young disabled sons childcare from easter to july, and i am late with my dissertation because im a single parent so im still completing my studies. I appealled to university finance about it and asked for access to learning help and they took around 5 months to respond !!!!!! and said no becuase as a single parent i get some benefit assistance.im pig sick of it all - so glad ive nearly finished.
  • pinkshoes
    pinkshoes Posts: 20,595 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I withdrew from uni at the end of april this year for personal reasons. The Student Loans Company have already paid the maintenance loan and grant to which I was entitled. However, last week they sent me a letter saying that I now owe them £950 as a grant overpayment

    You're only entitled to the grant if you finish the university year, otherwise it's not yours to keep, and should go to a student that is worthy of a grant, so you'll have to pay it back ASAP.

    What on earth made you drop out so close to the end of term? You would have been better off just sitting your exams regardless of circumstances.
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
  • i have been asked to repay 400 pounds for a grant overpayment, i was withdrawn from the course after failing my exams. Surely that means i have completed the year, albeit unsuccessfully, and do not have to pay back that grant?
  • Taiko
    Taiko Posts: 2,721 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    All the overpayments sound legit to me, and are in the Terms & Conditions which you have to sign to say you've read.
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