Student Loan Company trying to reclaim overpayment following AHRC funding

popupwoman73

Hi there hope someone can advise!

I am a PhD student currently nearly 2 years into a part-time 6 year course. I requested a student loan to cover tuition fees etc before I started the course in Sept 2023. I applied to get AHRC funding for my last 4 years (or 2 out of 3 full-time equivalent) and was lucky enough to get it. I informed SLC and they confirmed that they would stop my funding. However, since then, they have been asking me to repay my first year's instalment as my funding apparently invalidates my entire loan. I explained to them that I didn't have funding for my first year and had no idea I would get it and that I had needed to pay tuition fees etc for that first year. They are still insistent that I owe them £4779.33 as an overpayment and that it needs to be paid straight away. I have asked them to show me where it says this will be the case in their terms and conditions when I signed up for the loan. The only thing I can find is this sentence:  'You will not be able to get a Postgraduate Doctoral Loan if: You've received or will receive Research Council funding (for example, studentships, stipends, scholarships and tuition fee support)'. This is extremely unclear wording - how on earth would I have known that 'will receive' funding one year in? 

It has taken me months and multiple long phone calls to SLC to understand that this is their policy. During that time I have been harassed almost daily at times by their debt collection team, which has been distressing. One on occasion I was on the phone to them for an hour and a half during which time I was referred between 7 different departments. 

SLC have now acknowledged their role in my confusion and offered to pay me £150 to 'resolve my complaint' but still insist I need to start paying back the money now for the 'overpayment'. I have two questions: 1. Do I accept this or should I challenge it? 2. Has anyone else had any experience of this? I can't seem to find anything on the forum.

Thank you all! 

silvercar

I see there point in retrospect. You receive funding so weren’t eligible for the loan - so they would like the money back. If you had applied and received funding in years 1-4, what happens for years 5 & 6? If you would be eligible for funding in those years you could ask slc to consider the money received as allocated for years 5 & 6. 

In the meantime, I’d request all further communication be in writing or email and stop taking calls from them.