Overpayment of student loan and DRO

a23sd4

Hi,

I left uni at the start of my 2nd year - as I did not complete the year, the student loans company decided they had over-payed me and requested I paid the £1000 back immediately.

The amount of maintenance loan you were entitled to for the period you attended your course was £117. As you have already been paid £1150.71, this means that you have received an over-payment of £1033.71 which you are due to start repaying immediately. 

As far as i'm aware, this is a separate balance to my actual student loan - and has been a creditor in my DMP for the past 2 years.

However my query - can this be included in a DRO? As it's more of a short term debt, but still falls under the "student loan" category?

fatbelly

That's a good question and I had to check:

Overpayment of a student grant or bursary is a qualifying debt for DRO purposes even if the course period in which the grant was calculated is not completed in full as long as debt is a liquidated sum and repayment has been requested

Overpayment of a student loan isn't mentioned in any guidance notes that I can find so I think it stays as excluded like a normal student loan debt. Happy to be proved wrong though.

a23sd4

@fatbelly That's great news  
Just in case PayPlan query this can I ask where that quote is from?

fatbelly

I think it was from the Intermediary Guidance notes.
It's not great news. You have a Student Loan, not a Grant. Those debts are excluded from the DRO scheme so you still remain  liable to repay them.
As I said it's not stated explicitly that an overpayment of a loan should be  treated differently to a loan so I suspect it isn't but would love to be proved wrong.