Student grant overpayment - 6 years ago - please help!

Isabelle123

Hi everyone

I can't remember exactly when I first received a letter from SLC saying I had been overpaid, it was at least 6 years ago. Until reading these forums I never realised why this was and assumed it had been a mistake by SLC, but I now realise I did leave a course early in March 2006. When I got the letter due to being young and foolish I thought they were crazy to ask me for that much money back and assumed it was a mistake. It is less than a £1000. I ignored the letter and a third party then received a letter asking if she knew of a current address for me. She didn't respond either, and I never heard anything from SLC since. Until now, 2015, and all of a sudden a letter has been sent to my old address saying the debt has now been passed on to a debt collection agency. Now the debt collection agency is calling me daily and sending threatening letters.

What confuses me is that after the overpayment I went straight on to do a 3 year degree in September of 2006- 2009 and the grant was never taken out of the subsequent payments I received, which is what SLC says they will do. Also, 1 year ago, I did a PGCE and reapplied for funding from SLC. I received another grant from them then and no mention was made of the overpayment. I honestly had completely forgotten about it, I really would have preferred it was taken out of any payments I received as to suddenly get a letter now is a shock. I am confused as to why they are suddenly contacting me. I have never acknowledged or made payment towards this debt. the address they are contacting is my old address, they are not aware of where I currently live. Should it be statute barred as it has been over 6 years? Should I contact them to pay it back? I have been making payments to SLC directly out of my salary for several years now. I am just very confused as to why it is all coming up again now and I'm not sure what is best to do. any help would be really appreciated.

sourcrates

Hi,
This gets asked a lot on here, it does depend which type of loan you have, but I do belive they are subject to the limitations act.

Your best bet is to look here, on National Debt Lines website, if still unsure, give them a ring, and they will provide you with a positive answer.

https://www.nationaldebtline.org/EW/factsheets/Pages/25%20EW%20Time%20limits%20for%20recovering%20debts/Page-04.aspx

DD265

The contracts you sign when setting everything up include that you will repay any over payments, I don't think it's set in stone that they deduct it from a future payment.

I have also been in receipt of an over payment (although mine was because the council were rubbish at maths apparently) and have been paying it off at £10 per month since 2010 until last month when they got in touch and wanted more, now I am paying £250 a month in the view of the sooner it's gone the sooner I can put that money into other things. In my case because they had underpaid me on loan, I got the extra for that back when it happened - they didn't offset it against the overpayment.

Is it the SLC's collection department or external? The SLC themselves are fine to deal with as long as you do make an effort deal with them and they do work with you on payment plans. I will have cleared my over payment by November, if not before.

Isabelle123

Thank you for the responses, it isn't clear from the national debtline link as it only talks about student loans, this was an overpayment of a grant. I will give them a call and see if they can help.

It is an external company, this letter sent to my old address was the first contact in 6 years from SLC about it and they simply said they were passing it over to a debt collection agency, it is the debt collection agency that are contacting me now. Even if they didn't take the money out of future payments made to me, why contact me out of the blue after 6 years? I applied for my PGCE loan 2 years ago and provided the address and phone number to the SLC, but it is only now 2 year later that they have sent a letter to that address about the overpayment. I currently am employed but my contract terminates in June and I won't have any income so I am reluctant to set up a repayment plan if there is a chance the debt is statue barred.... of course if it isn't I will repay it but it will be a struggle so I don't want to do it if it is legally unenforcable. I have checked my credit ratings and the debt isn't showing up anywhere....

sourcrates

These type of debts get sold on in bulk, with it been April (new tax year) looks like someone's been having a clear out, and wanting to make a fast buck, see what ND. Have to say, as its a subject they deal with a lot.