Yes. It is required by law to pay back the extra funds you received from your Student Loan Company as it is categorised under Student Loan Overpayment. Let us guide you through solving this issue to overcome it more productively.
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You may have tons of questions rising in your mind when it comes to repaying your Student Loan Overpayment. Some of the common problems that could arise in your head can be as follows.
- Do I have to pay back the wholesome?
- What will happen if you refuse to pay back the overpayment?
- What will the Student Loan Company (SLC) do to me if you do not pay?
- And how does this Student Loan connect to the issue of student loan overpayment?
First of all, do not be scared if you receive a letter from Student Loan Overpayment debt collection agency asking to pay back the extra funds.
You are not the only person in the UK who got a letter asking for the return of the excess funds. Plus, You will find a number of UK personnel seeking online help within forums to solve this issue.
Below is a screenshot of the User “h00vertime” seeking help from the Money Saving Expert – Forum.
Therefore let us help you to deal with this problem properly.
Who is Student Loan Company, and what are Student Loans?
Student Loan Company(SLC) is an arm of the UK government that provides students like you with loans and grants for university or college studies.
They are also responsible for recollecting the loan repayments from the students. But only after they enter the workforce.
It does not mean you are needed to start paying as soon as you enter into a job. What they really mean is that the students need to pay back what they owe to SLC after they start earning. But only after passing a certain threshold income-wise.
The grants don’t need to be paid back as they were granted to students after assessing the financial situation of their parents or guardians’ income.
Overseeing student loan disbursements and collections, it is the lifeblood of higher education finance. But what if it’s found you’ve been overpaid? We’ll dive into that next.
Student Loan Company Reviews
Below are some reviews taken straight from the Trust Pilot website. We will include their review links with the comment so that you can check them out yourself later. These reviews are a kind of face that shows how they handle their code of conduct.
Their overall Trust Pilot Score is 1.4 out of 478 votes
Mistaken debt, chasing debt with numerous calls
They mistakenly gave me an overpayment – which at the time I was entitled to. 1 year later they have given me numerous calls to pay the debt back, I set up a payment plan (after 2 advisors disconnected me – and I had to call back).
A month after I set-up the payment plan, I received another call – requesting for me to pay the clear the debt. Informed them I had already set-up a plan, and they then chased for the direct debit that didn’t go through, that ended up being a system error on their side.
Mess of a company that continuously punish ex-students for their own mistakes and lack of process.
Date of experience: June 13, 2023 : (Source link here)
The worst communication I’ve ever known
Student loans have the absolute worst communication I’ve experienced. Every single time I call up I have to explain the same situation (with no notes on my file) so it’s starting from scratch ever phonecall.There’s no one there to take ownership of mistakes and you’d be lucky to actually speak to someone in the first place. Awful company I honestly hope they liquidate.Date of experience: March 28, 2023 : (Source link here)
Understanding What is Meant by Student Loan Overpayment?
“Student Loan Overpayment” occurs when SLC pays you more than you’re entitled to.
This can occur due to a variety of reasons. They are such as;
- Changing your course
- Altering your living arrangements, special if you have children or had to move in with your parents.
- You had to change the University.
- Or discontinuing your studies midway while you received the term loan in the beginning.
The discontinuity of your studies midway is the most common reason why people get a student loan overpayment notice in the UK.
Here’s a nugget for you, the overpayment isn’t always your fault!
Don’t you feel intrigued? Let’s find out more together.
Sometimes there are instances where students like you who have completed the degree and end up paying more than within a tax year.
In those instances, the SLC usually return those extra payments by staying aware of it. But you can also notify them about it if they do not reach out to you about it.
Impact of Student Loan Overpayment on Credit Rating
Next, we address a crucial question.
Does student loan overpayment affect your credit score?
- The simple answer is No. There is no direct contact between calculating credit scores and student loans.
- However, there is a twist though. It is that the debt collection process could have indirect implications though overpayment doesn’t affect your credit score directly.
Doesn’t it sound alarming? But don’t worry about it!. Because we’ve got you covered.
Do I have to pay back student loan overpayment?
Yes, You are obligated to pay the student loan overpayment by law in addition to paying your normal student loan. And that is the hard truth.
The repayments are still required on time. Even though it wasn’t your fault in the first place. There’s a silver lining though this might feel a tad unfair. You’re allowed to pay the overpayment back over several months.
How does that work? Keep reading the article. You will find it eventually.
Do I have to pay back student loan overpayment if it wasn’t my fault?
Yes. You still have to pay back the overpayment disregarding the fact that it wasn’t your fault. It doesn’t mean you’re helpless just because you’ve received an overpayment that wasn’t your fault.
Student Finance is quite accommodating. Therefore you can negotiate repayment terms that suit your financial condition.
But there’s more.
- What if you’re really struggling to meet up the day’s end needs?
- Will you be able to find any way out?
Yes, indeed. There are ways to solve this problem. So keep reading.
Procedure for Repaying a Student Loan Overpayment
The rules are clear when it comes to repaying overpaid student loans. The overpayment can be deducted from future payments if you’re still receiving student loan payments.
Also, you can choose to settle your student loan overpayment separately.
On the other hand, the overpayment debt needs to be paid back in a lump sum or instalments if you’re no longer receiving student loan payments.
Plus, The Student Loans Company is a flexible financial institution. Thus you can directly discuss and negotiate a suitable payment plan that matches your financial status.
There is no minimum income you should keep having(like student loans do have threshold income) in order to repay student loan overpayment.
Structuring a Student finance overpayment repayment plan
What if repaying the overpayment debt in one go is not possible?
Don’t lose your hopes yet. You can set up a repayment plan with the Student Loan Company (SLC). The SLC is often willing to listen to your unique situation and make arrangements accordingly.
There is nothing to worry about when dealing with SLC as long as you be reasonable with them. There are other ways to seek more help, yet if you feel like SLC is not helpful enough.
Get help with your student loan overpayment.
It’s essential to seek help if you’re struggling to maintain essential living standards while repaying a student loan overpayment debt.
You can approach your education provider or the Student Loans Company (SLC) for additional support.
We strongly suggest not ignoring these SLC reach outs about overpayments as it could escalate to a more complicated situation in that you will not be able to find a resolution easily.
So, what happens if you ignore these issues? Well, the situation could get a lot worse.
What happens if you don’t repay your student loan overpayment?
Ignoring your student loan overpayment can lead to stressful consequences. You’ll be contacted by the Student Loan Overpayment Debt Collection department if you don’t repay.
Still not responding? That’s when the student loan overpayment debt collection process begins.
Want to know more about this process? Let’s dive in.
Debt Collection Procedures: What happens if you don’t repay your student loan overpayment?
Things could escalate quickly if you continue to ignore letters from the Student Loan Overpayment Debt Collection department. Therefore it is essential to keep in contact with the SLC from the first notice you ever receive.
Otherwise, SLC could employ a debt collection group to recover the money if you keep ignoring their communications in every possible way.
This debt collection procedure can occur in two ways mainly.
There will be a point where SLC will get tired of chasing after you for the asking to back the overpayment If you keep ignoring their contacts.
Thus they will go to court to take a Counter Court Judgement(CCJ) against you. Therefore the court will surely make you responsible for repaying this overpayment back legally if it’s proven in court.
Could things get any worse? Yes, and here’s how.
The Possibility of Student Loans Employing Bailiffs
Imagine this scenario where you continue to ignore debt collection efforts, and suddenly the bailiffs get involved.
The creditor SLC will again go to court to take a warrant or a writ of a contract to use enforcement agents (bailiffs) to visit your premises and seize your valuables if you keep ignoring these initial court orders.
The seized items will be kept in a storehouse and eventually sold in an auction to recover their debts. The rest of the balance after acquiring the student loan overpayment will be debited back to you.
Sounds scary, doesn’t it? Unfortunately, that’s the harsh reality. Bailiffs can indeed be employed to recover student loan overpayment debts.
So, what’s the ultimate fate of such loans? Let’s discover.
Understanding if Student Loans Can Ever Be Cancelled: Does student debt ever get written off?
Did you know that student loans can be written off after many years? For example, Plan 1 student loans are wiped clean after 25 years.
But unfortunately, it’s not clear if a student loan overpayment debt can be cleared as statute-barred after six years. But the common acceptance is that student overpayments cannot be written off under statute barred state.
Understanding Your Legal Protections When Dealing with Debt Collectors
Being pursued by debt collectors can be a nightmare. But remember, they don’t have the same rights as bailiffs do.
In fact, you have a lot of legal protections when dealing with
Contact Details of Student Loans Company
|General Enquiries||0141 306 2000|
|Student Loans Company Address||100 Bothwell Street
|Media Enquiries Emailemail@example.com|
|Registered in England No||2401034|
|VAT registration number||556 4352 32|
|Customer Compliance||0300 100 0059|
Congratulations. You are miles away from facing SLC again as if you’ve already paid off your student loans on time!
Make sure that you have confirmation from the Student Loans Company (SLC). If not, ask them for a written document that shows your debt balance is zero. It could be a mistake if you receive a notice regarding an overpayment. Then it’s better to contact SLC immediately to clarify.
Yes, you are bound by law to settle the debt. Thus the location you are going to live in has no importance when it comes to repaying your Student loans. Indeed, The SLC will find a way to reach out to you promptly.
The Student Loans Company services international repayments as well. Make sure you inform SLC about your new circumstances and provide them with your further contact details if you leave the UK.
Absolutely yes. Student loans are designed to be paid back.
The payments typically start once you’ve graduated and your income is above a certain threshold. You’re obligated to repay the overpayment as well if you have overpaid your student loan.
Student loans can be written off under certain conditions.
They are such;
However, overpayments are not typically written off and must be repaid.
Ignoring student loans or overpayment notices can lead to serious consequences.
Initially, you’ll be contacted by the Student Loan Overpayment Debt Collection department. Debt collection agencies and, in extreme cases, bailiffs could get involved if you continue to ignore their attempts.
It’s not exactly illegal to not pay student loans. But it can lead to severe consequences.
Failure to repay can lead to debt collection processes. And in extreme cases where you keep ignoring SLC, reach out, and debt collection agencies can urge them to take legal action.
According to estimates, only around 30% of current full-time undergraduates who take out loans are expected to repay them in full.
These statistics are subject to change and largely depend on