Plan 2 paid off...payments reallocated to plan 1

Hi everyone 
I have 2 student loans: plan 1, plan 2. Plan 2 was paid off sometime last year, but on monitoring it online I can see my salary payments are still going to it, and the payment is then reallocated to plan 1, of which £13700 is remaining. My plan 2 loan continues to have a few pence Owed and thus I'm accumulating a small amount of interest. I called slc and explained the situation.  The worker said that I can apply for a refund in april, but he doesn't think I will receive a lot back as the payments have automatically been reallocated and that the few pence owed every month is to be disregarded. 

So, I'm a bit confused. I believed that if the plan 2 is paid off, the account should be closed? Instead of it continuing to receive my repayments and then reallocated to plan 1? As a result of this, my statement says I have paid only £390 to plan 1 (interest £638) and a whopping £2760 to plan 2 so far this year! Any advice? Is a refund due? They said the payments made to a closed acct are auto transferred to the open one, but based on the payments made, this isn't true.


  • silvercar
    silvercar Posts: 46,727
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    It’s probably correct that their poor systems mean that the plan 2 won’t be properly closed in the middle of the tax year. Also right that they are talking off pennies lost here. Up to you how much you want to fight it, but the time involved will probably take you beyond the end of this tax year and the effort may not be worth it.
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