Student Loan Overpayment

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  • bcahbcah Forumite
    4 Posts
    Sixth Anniversary Combo Breaker
    MoneySaving Newbie
    Apologies if someone has already asked this; as with PPI refunds, does anyone know why statutory interest of 8% isn’t applied automatically to SLC refunds? In effect, they’ve held on to money that could technically have been in use elsewhere, or earning interest in a savings account. I left university in 2005 and could, in theory, have a refund owed to me from as early as April 2007; over 11 years ago - a particularly long time for it not to be in my own account!
  • CWAL_2CWAL_2 Forumite
    3 Posts
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    Apologies if this has been answered, I have searched.

    I recently found out I was on repayment plan 1 with employer, when I should be on repayment plan 2. I have now changed this, easy peasy. However, When I contacted SLC the amount they were refunding me was not 9% of everything over £21k for tax yr 17/18, and 25k 18/19. I queried this with the 'somewhat inexperienced' call operator who said they have a maximum refund they can issue per month and it is £24.18. I have searched high and low, including the SLC website I can find nothing that mentions "a maximum refund". As far as I am aware this error was not my fault, I am payed via payroll, no voluntary payments whatsoever. It was only when I did some number crunching I spotted I was paying too much; its not obvious on any documentation from payslips, HMRC or SLC what plan you are on/should be. None of the systems sought to correct this for over 2 years. How do I go about getting the full refund?

    Some more information on this or if anyone can tell me where to go next.

    Thank you,
  • glider3560glider3560 Forumite
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    CWAL wrote: »
    Apologies if this has been answered, I have searched.

    I recently found out I was on repayment plan 1 with employer, when I should be on repayment plan 2. I have now changed this, easy peasy. However, When I contacted SLC the amount they were refunding me was not 9% of everything over £21k for tax yr 17/18, and 25k 18/19. I queried this with the 'somewhat inexperienced' call operator who said they have a maximum refund they can issue per month and it is £24.18. I have searched high and low, including the SLC website I can find nothing that mentions "a maximum refund". As far as I am aware this error was not my fault, I am payed via payroll, no voluntary payments whatsoever. It was only when I did some number crunching I spotted I was paying too much; its not obvious on any documentation from payslips, HMRC or SLC what plan you are on/should be. None of the systems sought to correct this for over 2 years. How do I go about getting the full refund?

    Some more information on this or if anyone can tell me where to go next.

    Thank you,

    The refund is the difference between the two thresholds, i.e. 9% of the Plan 2 threshold minus the Plan 1 of threshold.

    £24.18 per month is the correct amount for 17/18.

    When joining your employer, you should have filled in a New Starter Checklist, or provided a P45. Either of these should have shown the correct student loan plan.
  • 8370562883705628 Forumite
    482 Posts
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    bcah wrote: »
    Apologies if someone has already asked this; as with PPI refunds, does anyone know why statutory interest of 8% isn’t applied automatically to SLC refunds? In effect, they’ve held on to money that could technically have been in use elsewhere, or earning interest in a savings account. I left university in 2005 and could, in theory, have a refund owed to me from as early as April 2007; over 11 years ago - a particularly long time for it not to be in my own account!

    The regulations themselves do not specify this unless you have already pad it off, however the explanatory note states "If a borrower repays more than is owed to the Secretary of State or Welsh Ministers, any over-payment is repaid. Over-payment through PAYE is repaid with interest at the same level as is applied to the loans by the Secretary of State or Welsh Ministers (regulation 20)." (search "Student Loan Repayment Regulations 2009"])
    Call them and ask. If they say just keep complaining.
  • DigiemDigiem Forumite
    1 Post
    First Anniversary First Post
    MoneySaving Newbie
    SnowDawn wrote: »
    Hi all,

    I've just a little question regarding reclaiming payments made before the April after graduation.

    I used the SLC to fund a foundation degree (in my case, FdSc -- classed as higher education and worth 2/3rds of a BSc). I then continued to do a BSc "top-up" course to turn this into a full degree. Would the graduation date used for purposes of repayments be that of the foundation degree or that of the full degree?

    I appreciate the article has the section "What if I studied another course after my first degree?", however I'm unsure whether foundation degrees would be classed under that...

    My hunch is that they will be seen as two separate courses -- despite being related to each other -- therefore payments should have started the April after the first course.

    Has anyone been in a similar situation?

    Thanks for any help :)
    Hi,

    It would apply after the first degree.

    I’ve just called them as I graduated in June 2012 from a three year course. Due to the course changing name in 2011/2012 year they have me down as graduating one course in 2011 and graduating (same course) again in 2012, so they claim that I should have been paying from April 2012. My actual repayments started in August 2012 (which was the first job I got after ending my course) are in their eyes correct. So now I’m just hoping my uni still has records of me 6 years on and can sort this mess out! I’m not holding my breathe though!


    So I would say your repayments would start after the first course ended due to it being a different title and classed as a different course on their useless system.
  • Hi
    I repaid my loan a few years ago now and was wondering if I would still be eligible to see if I can reclaim any money
    Kirsty
  • Kbb8573 wrote: »
    Hi
    I repaid my loan a few years ago now and was wondering if I would still be eligible to see if I can reclaim any money
    Kirsty

    Yes potentially but why would you want to? You'd still have to repay the money so repayments would start again!
  • glider3560glider3560 Forumite
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    _shel wrote: »
    Yes potentially but why would you want to? You'd still have to repay the money so repayments would start again!

    I assume they mean overpayments made through PAYE after the loan had been repaid.
  • glider3560 wrote: »
    I assume they mean overpayments made through PAYE after the loan had been repaid.

    The thread is about those who started paying their loan earlier than legally required. This means they can get that money back. But would still need to repay the money.
  • Mile2goMile2go Forumite
    15 Posts
    Hi,
    Just wanted to share my experience of reclaiming my overpayment...

    Started the process of reclaiming only to be told my graduation date was wrong so no over payments according to them... I contested and had 3 weeks being passed from slc to student finance England, with a few requests to get my uni involved. After these 3 very frustrated weeks I get told that actually there has been an error on my account all along and although I am entitled to £480 back in overpayment I actually owe slc £545 due to being overpaid a grant! Had I not had my graduation date corrected this error never would have been discovered so I am not feeling too clever about it all now...

    Just thought I should share but hope everyone else has better luck than me!
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