Grant overpayment, is it negotiable?

greensalad

I graduated this summer and have just got a job. The same month I joined I get a letter telling me I was overpaid £1400 and I must pay it back immediately.

I'm trying to get my debts into order already but now SLC are demanding what I believe is a hefty amount and they would not take my offer.

They are asking £150 a month, or 50% of my disposable income. Although apparently they refuse to accept household purchases, Christmas savings or groceries to be part of feasible outgoings...

I'm trying to reduce this so I have some money left over this month to put into emergency savings. The reason they are demanding £150 is because I apparently am able to pay this much to my credit card company (I'm trying to reduce my debt there too) so if I'm able to pay £150 to them, I must be able to pay £150 to SLC... which doesn't make the tiniest bit of sense.

I guess I'm just asking if anyone has been able to negotiate this down? Or is it always what they say goes? They refused to accept my offer of £50, which is what I am currently putting into savings. I thought that was reasonable but they said no.

TheEffect

I had a £1k overpayment of grant. Graduated in July and currently looking for a job. I'm paying them £20/m until Jan 2015, then I'll have to renegotiate.

I've always found them quite helpful. They asked for £50, but accepted lower payments. Even when I was still a student (overpayment was from 2nd year), they let me pay £25/m.

greensalad

TheEffect wrote: »

I had a £1k overpayment of grant. Graduated in July and currently looking for a job. I'm paying them £20/m until Jan 2015, then I'll have to renegotiate.

I've always found them quite helpful. They asked for £50, but accepted lower payments. Even when I was still a student (overpayment was from 2nd year), they let me pay £25/m.

Wow, they let you pay that little?

I wonder if it's because I am employed. They said £150 was the lowest. They rejected my offer of £50. They said if I could afford to pay £150 to my credit card company (I'm paying that off) then I could afford to pay them £150.

agrinnall

greensalad wrote: »

Wow, they let you pay that little?

I wonder if it's because I am employed. They said £150 was the lowest. They rejected my offer of £50. They said if I could afford to pay £150 to my credit card company (I'm paying that off) then I could afford to pay them £150.

I guess that if the £150 that you're paying the CC company is more than the minimum repayment then they are right that you could at least pay the excess amount to SLC rather than your CC. Whether it's reasonable for them to say that is another matter.

greensalad

agrinnall wrote: »

I guess that if the £150 that you're paying the CC company is more than the minimum repayment then they are right that you could at least pay the excess amount to SLC rather than your CC. Whether it's reasonable for them to say that is another matter.

It is only about 20% above the minimum, I'm just trying to pay it off. It is very frustrating that they want to somehow "match" the debt. I just wondered if it was at all negotiable. I wanted to offer a lump sum (I am selling my car, hopefully about £450) and then offer the remainder over 12 months but the way the woman on the phone spoke to me it seemed like it was 100% non-negotiable.

TheEffect

greensalad wrote: »

It is only about 20% above the minimum, I'm just trying to pay it off. It is very frustrating that they want to somehow "match" the debt. I just wondered if it was at all negotiable. I wanted to offer a lump sum (I am selling my car, hopefully about £450) and then offer the remainder over 12 months but the way the woman on the phone spoke to me it seemed like it was 100% non-negotiable.

Rather than a lump sum, sell the car, agree on £100/month for 6 months with Student Loan Company, and slowly give them the lump sum. That'll get them off your back for 6 months, and is better then giving them a lump sum then still negotiating the remainder.

In 6 months time, you'll owe them £800, which you can agree a lower repayment as you don't owe so much.

amiehall

How do they have any of this information about your CC etc? Just tell them ONLY that you're willing to set up a payment plan and will repay £50 a month. Say nothing else. Then just go online and set up the payment plan yourself. See if they write to you again. I would think no...