Student Loan Refund Request confusion

Gagool

I finished repaying my Student Loan in 2016. I completed and submitted a refund request to Students loan and they replied with the below response which has confused me. I am hoping someone here can explain why they would take back a refund I am owed if I go ahead and ask for it back when I do not owe SLC(okay apparently there was a small amount of £3.48 which I have paid since this April) I have called the SLC but their explanation still does not make sense to me. I need it explained like you would a five year old... It seems clear enough but at the same time clear as mud to me I've blanked the amounts for security reasons

"...Thanks for sending your Refund Request Form.

You have a refund of £xxx for tax year 2012/23.
You have a refund of £xxx for tax year 2008/09.

What this means for you

As you finished repaying your loan in 2016, if you choose to have this amount refunded, your account will be reopened and deductions may start again, if you’re earning over the repayment threshold.

If you want to go ahead with this refund, please xxxx by phone or social media to confirm."

la531983

Basically they are admitting they took too much in some tax years but there is no such thing as a free lunch, you still owed the money regardless (maybe you would have finished paying the loan in 2017 instead, rather than 2016, had they done the payments correctly) and if they give you this money back you would still have to pay it back via new deductions from your salary going forward.

Personally I would just leave it. They are only giving you the money back based on the fact they took too much in two tax years, and for no other reason. It is still owed.

Think of it this way. Your mortgage is £500 a month. For a year the bank take £700 a month by mistake. A few years down the line you notice and you ask the bank for the 12 x £200 back, and they pay you back. You still owe them the money on the mortgage though

What made you fill in a refund request? 

Ed-1

Gagool said:

I finished repaying my Student Loan in 2016. I completed and submitted a refund request to Students loan and they replied with the below response which has confused me. I am hoping someone here can explain why they would take back a refund I am owed if I go ahead and ask for it back when I do not owe SLC(okay apparently there was a small amount of £3.48 which I have paid since this April) I have called the SLC but their explanation still does not make sense to me. I need it explained like you would a five year old... It seems clear enough but at the same time clear as mud to me I've blanked the amounts for security reasons

"...Thanks for sending your Refund Request Form.

You have a refund of £xxx for tax year 2012/23.
You have a refund of £xxx for tax year 2008/09.

What this means for you

As you finished repaying your loan in 2016, if you choose to have this amount refunded, your account will be reopened and deductions may start again, if you’re earning over the repayment threshold.

If you want to go ahead with this refund, please xxxx by phone or social media to confirm."

It's only really worth taking a refund if your loan would otherwise be written off. Otherwise, if you were going to pay it back anyway then you'll still pay it back.