Student loan demand after dropping out of University

Goucho

Hi there guys, my son decided that University was not for him and came home the second week of December 2016.

He has just received a demand (request) for an overpayment of Maintenance Loan of £337.12 which is due immediately. They do however offer to discuss the matter and work out a repayment plan.

Unfortunately my son had already budgeted for what he needed for the rest of the term and had spent all of his remaining maintenance loan.

As far as i was aware both the tuition fees and maintenance loan were not repayable until his earnings reached a certain threshold? If this is not the case due to him leaving early will he also be billed for his tuition fees for the rest of the term? There is also an added debt of his off campus university accommodation charges for the rest of the term (or maybe for a longer period depending on what the terms are for accommodation. This was arranged by the University)

This is a bit of a mess so we need to deal with one thing at a time.



+ Maintenance Loan demand +

1. What can we do about this because my son has no income at all even though he has just applied for Universal Credits he will not get any income for quite a while because they do not count the first 2 weeks and then he will not be paid for a further 4 weeks after that.

2. Is there any way to get this debt sorted under the Student loan terms of only repaying when income reaches a certain threshold?

I will tell him to not ring them yet until we get advice.


Thank you in advance.

[Deleted User]

Hi,

Student finance will recalculate the total funding he would have been due up until his last date of attendance. Anything over that amount is classed as an overpayment, this overpayment is due back immediately as it is money he wasn't entitled to receive.

If he calls to explain the situation they should offer him some sort of payment arrangement to pay the amount back.

They will not be able to switch this overpayment amount over to be paid back through his salary when he is earning over the threshold like the rest of the loan he was paid.

The Uni will let Student finance know how much Tuition Fees they are going to charge, that full amount will be paid to them then be added to the amount to be paid back when he is earning enough.

I don't know anything about the debts with the Uni accommodation or things like that but I am sure they will get the same from a lot of students who choose to withdraw from their courses.

Dxxx

AnotherJoe

On the upside this is all peanuts to the money he would have spent over the next 3 years.

Can you not pay it off ? You'd probably have spent that much going to see him, renting a van to take stuff to and fro, whatever, anyway.

[Deleted User]

My dd had a simlar problem but owed £900 she is now paying it back at £20 a month, they were very helpful.

Superscrooge

He will need to repay the overpayment. However it isn't unusual for students to quit a course during the first term and Student Finance will be used to dealing with the situation that your son is in.

I suggest he contacts them and works out a repayment plan.

An agreed repayment plan should avoid any negatives on his credit file.

Goucho

thanx peeps