Overpaid loan/grant - SLC threatening court action!

woj101

Apologies for a repeat posting in 2 threads, but I'm desperate for some input on this, I'm not enjoying the best of life at the mo and would like to resolve this asap:

Hi, I need some advice/help regarding my student loan.

I started a PGCE last September but decided against completing it in March and deferred my course indefinitely.

Shortly afterwards I was contacted by SLC saying that because I had suspended my studies they had overpaid my loan installment by about £400. For a while I just ignored the letters because I wasn't in work and didn't think it was much of a big deal. But now I have just found a letter saying if I haven't paid it by this week they will start court proceedings.

But I'm still out of work and not in a position to pay this money. I can't understand why it doesn't just get added to the total amount I owe from my undergrad days.

I guess, of course, I need to ring them, but does anyone know where I stand? Can I just get it added to my account?

Thanks very much.

woj101

I know this is incredibly selfish to up my own thread, but I'm really hoping someone with some knowledge of this could see this this afternoon as the stress is getting to me. Sorry all.

melancholly

i have no specialist knowledge i'm afraid, but you should definitely get in touch with them asap - if you ignore it, they will take you to court. you may be able to arrange some kind of payment plan, or get it added to what you already owe them (perhaps at a different interest rate?).

luv_or_h8_me

Too be honest, and you will hate me for saying this but you sign a contract which says how long your course is... if you don't do it for that length then you should expect to pay money back. Its almost like a phone contract with 3G!! If you end your contract early you have to pay the line rental for the remainder of the contract length... (GITS I know!!)

woj101

It looks like I fell for their threats. I rang them and they didn't seem that bothered. I've agreed to make monthly payments of £25, they seemed happy with that. Thanks for your comments.

Lavendyr

As long as you contact them and do something about it, which you now have, it will be fine in most cases. Obviously, they want their money back, and if the only way they can get it is £25 a month, then that's better for them than having to start court proceedings against you to get the lump sum back - which wouldn't help in any case, if you don't have the money to give them.

But beacuse you weren't responding to their earlier letters, it looked like you were ignoring them - which you admit you were. You owed them money and clearly their threat to take you to court was necessary, because until they made that threat, you "didn't think it was much of a big deal" to pay them back. I'm glad you've sorted things now, but I strongly recommend you don't take that attitude into working life with you. In future, if people write to you asking for repayments - don't ignore them, contact them straight away and work out a solution - after all, the debt isn't going to vanish just because you don't think it matters, and they are more likely to be reasonable with you if you show a willingness to co-operate.

andyrules

If you are out of work, should you not be deferring payment anyway? Did you ask why that couldn't be added to previous loan, which I assume you are deferring?