Student loan repayment demands while in education

urb

Last year I had to make the difficult decision to suspend my studies at university after being diagnosed with a life threatening illness. My studies were suspended on the 15th of March 2013. This has resulted in me having an over payment of £715 (round figure) from Student Loans Company.

I received this letter in August of last year and set up a payment plan of £10 per month, as I had no form of income, no access to benefits etc this was all I could afford. And at the time I was going through some intense medical treatment which meant trying to get work wasn't going to be possible. Student Loans were happy for me to pay off £10 per month until this week when I had a letter again saying that I owe them £650.

I called them and explained that I was back in education finishing off my degree and that I had no job, only my student loan which I need to use for living costs. I said that I could manage £40 per month. They have told me that I need to pay off the full amount by March 15th this year or action my be taken against me. They would not tell me what this means.

I have been looking on google for advise on this type of situation but can't find much help. This forum seems like a good place to ask, please could anyone advise me on where I stand with this type of situation and what I can do. I would also like to know what "further action" could actually be.

Just to add, Student Loans were fully aware as to why I suspended my studies, medical evidence submitted but it doesn't make a difference.

Thanks in advance for any advice given.

brendon

If you have been overpaid, you are liable for that debt. Have you asked for advice from your university? Your union should have someone to talk to about finance problems. They will advise you of the best course of action.