Overpayment of Student Grant

Hi, I would be grateful if anyone can help with this.

I am currently receiving many calls by a debt recovery agency for overpayment of a student grant of around £600. Before I make contact with them, I wanted to know if there is any way that this debt could be statue barred.

The reason for this is the grant was paid in either 06-07, 07-08 or 08-09 - I am not sure which as I can't find the paperwork and SLC were no help. Student Finance were unable to give much details and referred me to my local authority.

I had received letters from SLC about this but I always thought the amount was being recovered from my payments to SLC which are taken from my paltry salary. I remember receiving a letter from Smith Lawson but had no further contact from them so thought, as above, that it was being repaid. Since having frequent hassle from the new agency, I called SLC to find out more about this overpayment. Will they keep insisting on it being repaid even though it was such a long time ago and is quite a low amount (for them and considering how much my loan still stands at!)?
Thanks for reading!

Reply 1

Klix88

Original post by Ladybird82

Yes, they will pursue you for repayment, especially as a debt collection agency is now involved.

"Smith Lawson" is one of the names used by the SLC to follow up outstanding debts.

You have two types of repayment: the gradual one from your wages and the immediate lump sum of £600. Payments taken from your salary cover the repayments of loans which were due to you during your time as a student. If you left mid-year or mid-term, then immediate repayment would be required for any money you'd had which was intended to cover you for the period after you left uni. This will be the £600 which the debt collection agency is chasing for.

It's a shame that you misunderstood the Smith Lawson letter, as you could have negotiated a gradual repayment plan with SLC earlier in the process. As it is, you will now be dealing with the rather more hard-nosed debt collection agency and you will be facing court action and a bailiff's order unless you start talking to them. Having a County Court Judgement against you will affect your credit rating and also your ability to get jobs (CCJs generally have to be declared on job applications and this factor can be used to filter out candidates).

Please don't carry on ignoring the debt collection agency. I know it's scary, but it will only get worse if you don't sort it out.

Reply 2

applicationa

Original post by Ladybird82

I am currently receiving many calls by a debt recovery agency for overpayment of a student grant of around £600. Before I make contact with them, I wanted to know if there is any way that this debt could be statue barred.

The reason for this is the grant was paid in either 06-07, 07-08 or 08-09 - I am not sure which as I can't find the paperwork and SLC were no help. Student Finance were unable to give much details and referred me to my local authority.

No, this would not be a reason to statute bar your debt. You could only statute bar it if your creditor did not attempt to chase you for it. SLC have been doing so with their regular contact with you.

Overpayment of Student Grant

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