Maintenance Loan Overpayment
Ok,
So this academic year I applied for an income assessed loan, however my mum and her partner didn't submit the required documents until May. I received a letter through in the middle of June saying I was entitled to have additional loan payments and the full maintenance grant backdated, and duly received around £3,500 into my bank account.
I knew the household income submitted had decreased significantly, but didn't think it would qualify me for the full grant, so I rang student finance to double check it was correct and was assured it was.
I then used the cash over the summer to stay in London and complete an unpaid work placement (rather than going home and finding paid work as I have done previous summers).
2 days ago I was sent a letter stating the grant had been overpaid by around £2,750 and they want it back. I'm not particularly impressed by this request and have since found out that due to an 'error' they assessed the household income as ZERO, despite being supplied with all the correct documents.
I'm not complaining that I have to pay the money back, but the best option they can offer me is to defer the repayment until when I graduate. I was planning to either complete an MA or start a business soon after graduating and having almost £3,000 of debt (that I did not technically agree to) that will be aggressively pursued was not really included in my plans for the next few years.
Does anyone have any experience of this situation? Ideally I would like them to absorb the overpayment and add it to my student loan, meaning the debt is then sustainable, but the manager I spoke to said that probably can't happen (although was not actually from the repayments department, as they handily do not take phone calls).
So this academic year I applied for an income assessed loan, however my mum and her partner didn't submit the required documents until May. I received a letter through in the middle of June saying I was entitled to have additional loan payments and the full maintenance grant backdated, and duly received around £3,500 into my bank account.
I knew the household income submitted had decreased significantly, but didn't think it would qualify me for the full grant, so I rang student finance to double check it was correct and was assured it was.
I then used the cash over the summer to stay in London and complete an unpaid work placement (rather than going home and finding paid work as I have done previous summers).
2 days ago I was sent a letter stating the grant had been overpaid by around £2,750 and they want it back. I'm not particularly impressed by this request and have since found out that due to an 'error' they assessed the household income as ZERO, despite being supplied with all the correct documents.
I'm not complaining that I have to pay the money back, but the best option they can offer me is to defer the repayment until when I graduate. I was planning to either complete an MA or start a business soon after graduating and having almost £3,000 of debt (that I did not technically agree to) that will be aggressively pursued was not really included in my plans for the next few years.
Does anyone have any experience of this situation? Ideally I would like them to absorb the overpayment and add it to my student loan, meaning the debt is then sustainable, but the manager I spoke to said that probably can't happen (although was not actually from the repayments department, as they handily do not take phone calls).
Original post by jt0909
Ok,
So this academic year I applied for an income assessed loan, however my mum and her partner didn't submit the required documents until May. I received a letter through in the middle of June saying I was entitled to have additional loan payments and the full maintenance grant backdated, and duly received around £3,500 into my bank account.
I knew the household income submitted had decreased significantly, but didn't think it would qualify me for the full grant, so I rang student finance to double check it was correct and was assured it was.
I then used the cash over the summer to stay in London and complete an unpaid work placement (rather than going home and finding paid work as I have done previous summers).
2 days ago I was sent a letter stating the grant had been overpaid by around £2,750 and they want it back. I'm not particularly impressed by this request and have since found out that due to an 'error' they assessed the household income as ZERO, despite being supplied with all the correct documents.
I'm not complaining that I have to pay the money back, but the best option they can offer me is to defer the repayment until when I graduate. I was planning to either complete an MA or start a business soon after graduating and having almost £3,000 of debt (that I did not technically agree to) that will be aggressively pursued was not really included in my plans for the next few years.
Does anyone have any experience of this situation? Ideally I would like them to absorb the overpayment and add it to my student loan, meaning the debt is then sustainable, but the manager I spoke to said that probably can't happen (although was not actually from the repayments department, as they handily do not take phone calls).
So this academic year I applied for an income assessed loan, however my mum and her partner didn't submit the required documents until May. I received a letter through in the middle of June saying I was entitled to have additional loan payments and the full maintenance grant backdated, and duly received around £3,500 into my bank account.
I knew the household income submitted had decreased significantly, but didn't think it would qualify me for the full grant, so I rang student finance to double check it was correct and was assured it was.
I then used the cash over the summer to stay in London and complete an unpaid work placement (rather than going home and finding paid work as I have done previous summers).
2 days ago I was sent a letter stating the grant had been overpaid by around £2,750 and they want it back. I'm not particularly impressed by this request and have since found out that due to an 'error' they assessed the household income as ZERO, despite being supplied with all the correct documents.
I'm not complaining that I have to pay the money back, but the best option they can offer me is to defer the repayment until when I graduate. I was planning to either complete an MA or start a business soon after graduating and having almost £3,000 of debt (that I did not technically agree to) that will be aggressively pursued was not really included in my plans for the next few years.
Does anyone have any experience of this situation? Ideally I would like them to absorb the overpayment and add it to my student loan, meaning the debt is then sustainable, but the manager I spoke to said that probably can't happen (although was not actually from the repayments department, as they handily do not take phone calls).
your lucky tbh, student finance usually demands the money back straight away if they make an overpayment
You signed up to their T&Cs when you took the loan.
Why?
Are you too lazy to read your own contract?
Anyway try this out, it is quite clear, you have to pay it.
[PDF]Change of Circumstances and Overpayments Policy ... - Practitioners
www.practitioners.slc.co.uk/.../coc_and_overpayments_1112_final_v_1.0....
Are you too lazy to read your own contract?
Anyway try this out, it is quite clear, you have to pay it.
[PDF]Change of Circumstances and Overpayments Policy ... - Practitioners
www.practitioners.slc.co.uk/.../coc_and_overpayments_1112_final_v_1.0....
(edited 10 years ago)
Everything SFE do is governed by the law specifically the Education (student support) Regulations 2011 - this law says they must recover overpaid grants. Sadly the law does not make exceptions for their own errors. You could complain though - see how to on www.slc.co.uk (search complaint).
How they recover the overpaid grants is more flexible - it can be recovered from grant you might be entitled to in subsequent years. This is often done automatically when you are awarded the next years funding.
If you are not entitled to any grants in subsequent years then they will seek to recover in other ways.
They will not add the grant to the loan balance as an option - it is not in their power to do so s the law does not allow it.
However you could negotiate an affordable repayment which is likely to be at a low level while you are still studying after you graduate.
Apply to the Access to Learning Fund - not specifically for this but the problem is adding to your hardship, you may get an award and there is no harm in trying.
Go an see a money adviser at your university - there will be one in either the Student Services or Student Union teams - they will help you.
Good luck.
How they recover the overpaid grants is more flexible - it can be recovered from grant you might be entitled to in subsequent years. This is often done automatically when you are awarded the next years funding.
If you are not entitled to any grants in subsequent years then they will seek to recover in other ways.
They will not add the grant to the loan balance as an option - it is not in their power to do so s the law does not allow it.
However you could negotiate an affordable repayment which is likely to be at a low level while you are still studying after you graduate.
Apply to the Access to Learning Fund - not specifically for this but the problem is adding to your hardship, you may get an award and there is no harm in trying.
Go an see a money adviser at your university - there will be one in either the Student Services or Student Union teams - they will help you.
Good luck.
Original post by jt0909
Ok,
So this academic year I applied for an income assessed loan, however my mum and her partner didn't submit the required documents until May. I received a letter through in the middle of June saying I was entitled to have additional loan payments and the full maintenance grant backdated, and duly received around £3,500 into my bank account.
I knew the household income submitted had decreased significantly, but didn't think it would qualify me for the full grant, so I rang student finance to double check it was correct and was assured it was.
I then used the cash over the summer to stay in London and complete an unpaid work placement (rather than going home and finding paid work as I have done previous summers).
2 days ago I was sent a letter stating the grant had been overpaid by around £2,750 and they want it back. I'm not particularly impressed by this request and have since found out that due to an 'error' they assessed the household income as ZERO, despite being supplied with all the correct documents.
I'm not complaining that I have to pay the money back, but the best option they can offer me is to defer the repayment until when I graduate. I was planning to either complete an MA or start a business soon after graduating and having almost £3,000 of debt (that I did not technically agree to) that will be aggressively pursued was not really included in my plans for the next few years.
Does anyone have any experience of this situation? Ideally I would like them to absorb the overpayment and add it to my student loan, meaning the debt is then sustainable, but the manager I spoke to said that probably can't happen (although was not actually from the repayments department, as they handily do not take phone calls).
So this academic year I applied for an income assessed loan, however my mum and her partner didn't submit the required documents until May. I received a letter through in the middle of June saying I was entitled to have additional loan payments and the full maintenance grant backdated, and duly received around £3,500 into my bank account.
I knew the household income submitted had decreased significantly, but didn't think it would qualify me for the full grant, so I rang student finance to double check it was correct and was assured it was.
I then used the cash over the summer to stay in London and complete an unpaid work placement (rather than going home and finding paid work as I have done previous summers).
2 days ago I was sent a letter stating the grant had been overpaid by around £2,750 and they want it back. I'm not particularly impressed by this request and have since found out that due to an 'error' they assessed the household income as ZERO, despite being supplied with all the correct documents.
I'm not complaining that I have to pay the money back, but the best option they can offer me is to defer the repayment until when I graduate. I was planning to either complete an MA or start a business soon after graduating and having almost £3,000 of debt (that I did not technically agree to) that will be aggressively pursued was not really included in my plans for the next few years.
Does anyone have any experience of this situation? Ideally I would like them to absorb the overpayment and add it to my student loan, meaning the debt is then sustainable, but the manager I spoke to said that probably can't happen (although was not actually from the repayments department, as they handily do not take phone calls).
Your contract states the terms on your loan.
Be thankful that they're not asking for repayment until your graduate I say. You're getting away with an incredibly low-interest rate loan with minimal repayment rates and which doesn't even show up on a credit report.
If this was HMRC/Council Tax/JSA/other Student Finance cases, you'd be asked to repay it almost straight away.
Be thankful that they're not asking for repayment until your graduate I say. You're getting away with an incredibly low-interest rate loan with minimal repayment rates and which doesn't even show up on a credit report.
If this was HMRC/Council Tax/JSA/other Student Finance cases, you'd be asked to repay it almost straight away.
Original post by balotelli12
Why?
Are you too lazy to read your own contract?
Anyway try this out, it is quite clear, you have to pay it.
[PDF]Change of Circumstances and Overpayments Policy ... - Practitioners
www.practitioners.slc.co.uk/.../coc_and_overpayments_1112_final_v_1.0....
Are you too lazy to read your own contract?
Anyway try this out, it is quite clear, you have to pay it.
[PDF]Change of Circumstances and Overpayments Policy ... - Practitioners
www.practitioners.slc.co.uk/.../coc_and_overpayments_1112_final_v_1.0....
Surprisingly enough, I dont carry my contract around in my pocket, but thanks for the link.
I've made it quite clear that I'm aware I have to pay it. I'm questioning the situation regarding repayment. I think it's rather ridiculous they can make such a huge processing error and just turn around and go 'tough ****' then slap a £3,000 debt on you the second you graduate. It will show up on a credit report once I graduate and it becomes a debt separate from my student finance.
Does anyone know what 'BIS guidelines' are? Thanks
"Overpayments made as the result of an internal error 68. The Regulations do not specifically cover circumstances where a
miscalculation by SFE results in a student receiving payment of a higher
amount than he or she is entitled to. However, regulation 115(1) provides
that an eligible student must, if required by the Secretary of State, repay any
amount paid to him under Part 5 or Part 6 of the Regulations which for
whatever reason exceeds the amount of support to which he is entitled
under Part 5 or Part 6. And regulation 114(2) provides that the Secretary of
State must recover an overpayment of any grant for living and other costs
unless he considers it is not appropriate to do so.
69. SFE should always carry out the re-assessment even when the
overpayment has resulted from an internal error. The circumstance that
caused the overpayment to arise should be taken into consideration when
negotiating the most appropriate method of recovery where the student is
unable to make repayment in full. SLC will negotiate the recovery of the
overpaid amount on a case by case basis and in line with BIS guidelines."
I will try again.
Everything SFE do is governed by the law - Education (student support) regulations 2011. They do not have much scope to do things not covered by the law. They have strong powers to recover overpaid grants - in fact the law says they must recover grants. Sadly there isno exception even when it was paid in error.
You could complain - see www,slc.co.uk to find out how to.
For the BIS guidence google - SLC practitioners then look under Policy section.
How SFE recover has some flexibility - often they recover grants from grants paid in subsequent years. If you are not entitled to grant in later years then negotiating affordable repayments is the way forward. If you are still studying after the UG course then let them know what you can afford - see www.adviceguide.org.uk for advice on negotiating with someone you owe money to.
Apply to the Access to Learning Fund - nothing lost and you may get some help.
Go see an adviser at your uni in the SU or the Student Services team - they should help you.
Good luck
Everything SFE do is governed by the law - Education (student support) regulations 2011. They do not have much scope to do things not covered by the law. They have strong powers to recover overpaid grants - in fact the law says they must recover grants. Sadly there isno exception even when it was paid in error.
You could complain - see www,slc.co.uk to find out how to.
For the BIS guidence google - SLC practitioners then look under Policy section.
How SFE recover has some flexibility - often they recover grants from grants paid in subsequent years. If you are not entitled to grant in later years then negotiating affordable repayments is the way forward. If you are still studying after the UG course then let them know what you can afford - see www.adviceguide.org.uk for advice on negotiating with someone you owe money to.
Apply to the Access to Learning Fund - nothing lost and you may get some help.
Go see an adviser at your uni in the SU or the Student Services team - they should help you.
Good luck
Hi, I have tried to give you some help on this one but for some reason the messages have not made it on. Nothing controversial but straight forward guidance.
I can only say this can't be the place to get your answers. What ever uni you are at go find an money adviser, in the SU or student services - they will help you.
I can only say this can't be the place to get your answers. What ever uni you are at go find an money adviser, in the SU or student services - they will help you.
Original post by jt0909
....
Original post by Levitator
Hi, I have tried to give you some help on this one but for some reason the messages have not made it on. Nothing controversial but straight forward guidance.
I can only say this can't be the place to get your answers. What ever uni you are at go find an money adviser, in the SU or student services - they will help you.
I can only say this can't be the place to get your answers. What ever uni you are at go find an money adviser, in the SU or student services - they will help you.
I agree with levitator - go speak to the people at your Student Union - they will know if there are any ways around this and should support you in making appropriate arrangements
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