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Student Loans Company mistake

Hi. I'd really appreciate it if someone could help me with this.

I applied to uni this year. Competition for the degree I wanted to do was fierce and in the end I didn't get a place. I'm repeating my A-levels this academic year and will be reapplying to start the same course next year.

I applied for student finance in March, expecting to start this year. I was told by the admissions department to hold on for a place on the degree right up until last week.

The thing is, the student loans company has paid made 2 payments into my bank account: a ~£1200 loan payment and a ~£1200 bursary payment. These payments have been made even though I am not attending the course, and I was told by Student Finance that they do not pay money into student bank accounts without confirming your attendance on your course with the college or university you attend.

My question is how to proceed with this now that it looks like I am definitely not getting onto the course this year. I understand that I will have to pay back the bursary, but what about the loan? Will that just be paid back along with the rest of the student debt that I will accrue over the years of my degree or will I have to pay it back now?

Any help on this would be greatly appreciated. Thanks.
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Comments

  • Taiko
    Taiko Posts: 2,721 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You need to contact the SLC and return the funds, getting everything cancelled off. Your university have obviously confirmed your attendance in error.

    If you don't do this, it is going to use up your +1 year on their systems at best, and at worst you'll be made ineligible for the full duration of your course when you do go due to being unfit to receive support by means of your conduct.
  • silvercar
    silvercar Posts: 50,108 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    I'd be tempted to make a quick phone call to the uni. Just in case they have counted you in their numbers without telling you.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • There is a limit to how many years of loan they will give - so keeping this now may affect you later. They may also demand it back when their systems realise (probably the next year when they confirm attendance of the next year) that you aren't on the course. If you have spent it or put it into a locked ISA you might find that tough!

    Also, it might (although I have no real proof) cause them to decide not to give you a loan in future if it looks on the system as if you kept this intentionally or were attempted to commit fraud... it is hard to tell but the safest way is to give it back. Get everything in writing and often going into meet them in person can help - I've had issues with the SLC before where they lost my repayments, had wrong amounts or changed my address etc and it was always quickest solved by face to face meetings if you can still do that :)

    This is, of course, all assuming the course hasn't had a dropout and put you on the course and the letter is in the post. Good luck!
  • yevsk
    yevsk Posts: 12 Forumite
    Thanks for the replies.

    I called admissions at the uni and they tell me they definitely don't have a place for me. I've not spent any of the money or moved it from my bank account. I only noticed it on Monday when I got my bank statement. I'll give them a ring tomorrow.
  • yevsk
    yevsk Posts: 12 Forumite
    I spoke to someone from Student Finance today who was worse than useless. She said their mistake would mean I would lose a year of future entitlement "because the computer says so".

    Good lord, how do these people get jobs. I'm going to get in touch with my education board instead on Monday.
  • Taiko
    Taiko Posts: 2,721 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Whoever told you that needs to be sacked. If you've got the time you may the call, I'd contact the SLC Complaints team quoting that time, the number you dialled (as some people don't dial the 0845 number) and the number you called them from. Hopefully that person will have a P45 waiting for them the next shift they work.
  • stesilc
    stesilc Posts: 64 Forumite
    do you have a phone number for complaints:mad: thanks
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    stesilc wrote: »
    do you have a phone number for complaints:mad: thanks

    First hit on google for SLC complaints is this (How to Make a Complaint), which includes a phone number:

    http://www.slc.co.uk/media/225427/ppc008_2011_v7_online.pdf

    I'm always a bit worried about students (if stesilc is indeed a student, although the same applies to anyone who is able to use MSE) who seem incable of performing the simplest query online for themselves.
  • devildog
    devildog Posts: 1,222 Forumite
    yevsk wrote: »
    Hi. I'd really appreciate it if someone could help me with this.

    I applied to uni this year. Competition for the degree I wanted to do was fierce and in the end I didn't get a place. I'm repeating my A-levels this academic year and will be reapplying to start the same course next year.

    I applied for student finance in March, expecting to start this year. I was told by the admissions department to hold on for a place on the degree right up until last week.

    The thing is, the student loans company has paid made 2 payments into my bank account: a ~£1200 loan payment and a ~£1200 bursary payment. These payments have been made even though I am not attending the course, and I was told by Student Finance that they do not pay money into student bank accounts without confirming your attendance on your course with the college or university you attend.

    My question is how to proceed with this now that it looks like I am definitely not getting onto the course this year. I understand that I will have to pay back the bursary, but what about the loan? Will that just be paid back along with the rest of the student debt that I will accrue over the years of my degree or will I have to pay it back now?

    Any help on this would be greatly appreciated. Thanks.

    They say that they don't pay money until attendance is confirmed by the Uni but this is obviously wrong as one of mine got paid too and their attendance was never confirmed either.Student Finance make it up as they go along(well when it suits them of course :) )
  • yevsk
    yevsk Posts: 12 Forumite
    Just an update for those who were interested in this.

    Trying to get this straightened out has been a complete and utter nightmare. I have spent probably a full day on the phone this week, being given the runaround by 4 different institutions: Student Finance NI, my education and library board, The Student Loans Company and the university i applied to. And of course every time I call any one of them I have had to explain the entire situation before I can make any progress.

    I was told so many different and conflicting things by so many different people that I am honestly still not sure there are any rules for this. These are organizations whose job it is to provide student finance. Is it really so much to ask that they have a clear contingency in place for dealing with cases where funds are paid to people in error?

    Another shocking thing has been how these institutions do not talk to each other, but make the student call around to sort things out themselves. I actually lost count of the number of different phone numbers I was given to call, only to be told by the people who answered the phone that they could not help me.

    I am shocked at the level of incompetence I have had to deal with. I am an extremely patient person and I am never rude to anyone, but some of the people I spoke to on the phone would have tried the patience of a saint.

    Anyhow, I have posted cheques to the Student Loans Company to pay back the money that I was paid. The main concern now is making sure that I do not lose a year's entitlement to student finance in future because of this. No doubt that will be an even bigger battle.

    There was also a very obvious degree of bum covering going on when I did manage to get to the bottom of whose fault it had been that I was paid this money. I managed to get someone to admit on the phone that it had been a "computer error" at Student Finance NI, but they refused to give me anything in writing as a record of this, and are refusing to send a letter to my education and library board explaining that this was not my fault.

    The older I get, the more it seems like nobody, anywhere, has a bloody clue what they're doing. :(
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