100,000+ university leavers likely owed £100s as they started repaying their student loan too soon

25
Found 13th Dec 2017
I came across an article on MoneySavingExpert this morning and thought I'd share in case it helps anyone. Apologies if this is not the right place. Some parts of the article copied below.

If you started in higher education in or after 1998 and started paying back your student loan early, you can reclaim by calling the SLC see how to reclaim. In the past three years it's paid out refunds worth £729,000 to 2,190 people, an average of £333 per claimant. Some have said it took just minutes to reclaim £100s.

How to reclaim

To check if you're due a refund, you need to first determine whether or not you began repaying your student loan before the April after you left university.

If you have payslips, these will usually show whether or not deductions were made for student loan repayments. You can also check by ringing the SLC on 0300 100 0611 (or +44 141 243 3660 from overseas). And calling this number will allow you to claim the money back.

Just say you think you started paying back your student loan before the April following your graduation, and you would like to reclaim that money.

There are no restrictions on how far back you can claim, so while many doing this will be recent graduates, there's nothing to stop you doing this even if you overpaid years ago. The SLC even says that in theory you could ring and reclaim AFTER repaying your loan in full, although it's not clear how this would work in practice and this could be an admin headache for you, as you would only then have to resume repayments.

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25 Comments

Are you saying people have overpaid in the sense of made repayments too early...so just ahead of their repayments or overpaid in the round ie after repaying their loan completely have paid too much?

bluep20 m ago

Are you saying people have overpaid in the sense of made repayments too …Are you saying people have overpaid in the sense of made repayments too early...so just ahead of their repayments or overpaid in the round ie after repaying their loan completely have paid too much?


Full answer to your question is set out and explained in the linked information, link is in OP's "How to claim".

I overpaid on purpose just to stop seeing it coming out my wages every month.

CoeK1 h, 1 m ago

I overpaid on purpose just to stop seeing it coming out my wages every …I overpaid on purpose just to stop seeing it coming out my wages every month.



Yeah, I went to uni in late 90s and they said it was as good as "interest free" as you would ever get - few years later I owed massive amounts more than I borrowed.. I just paid it all off...

I don't really understand this thing though - saw it on TV other night - its not really a refund is it... they give you money back and then you owe them that back.... so you might as well leave it surely?? or am I missing something?
Edited by: "joanddan7" 13th Dec 2017

Is this a Dianne Abbott loan?.

Likewise paid it off early too. Will call them to see if I'm entitled to anything.

joanddan735 m ago

Yeah, I went to uni in late 90s and they said it was as good as "interest …Yeah, I went to uni in late 90s and they said it was as good as "interest free" as you would ever get - few years later I owed massive amounts more than I borrowed.. I just paid it all off...I don't really understand this thing though - saw it on TV other night - its not really a refund is it... they give you money back and then you owe them that back.... so you might as well leave it surely?? or am I missing something?



That seems to be how it works yeh. I went to Uni in the early/mid 00's then done an OU degree too but i had to pay for that myself.

.MUFC.1 h, 42 m ago

Is this a Dianne Abbott loan?.



It was a Tony Blair loan (or Thatcher-lite), then every political decision maker has left it such, every student knows this.
The only difference is some tried to spin it as a tax rather than as a loan.

And in any case Diane Abbott is A* in maths exams as she only got one/two maths questions wrong in her life (on LBC) as far as I could make out from the news media? Perhaps you can list the wrong maths answers for us if she had done loads of sums wrong? Every student worth one's salt knows these elementary exam (put-on-the-spot) mistakes.

Just apply common sense, it is something that you have to pay back unless you meet certain criteria and in the meantime £50,000 plus interests at 6.1% accummulates to~ £310,250 in 30 years. Someone has to pay, right, even if it is not you. May be it is the tax payer, but the critical question is, do you ever live tax free in UK? They say , if it walks like a duck, quacks like a duck, lays duck eggs, then...
Edited by: "splender" 13th Dec 2017

Unfortunately, I don’t think I’ll have a job by April, so this won’t affect me

joanddan73 h, 10 m ago

Yeah, I went to uni in late 90s and they said it was as good as "interest …Yeah, I went to uni in late 90s and they said it was as good as "interest free" as you would ever get - few years later I owed massive amounts more than I borrowed.. I just paid it all off...I don't really understand this thing though - saw it on TV other night - its not really a refund is it... they give you money back and then you owe them that back.... so you might as well leave it surely?? or am I missing something?



Only do this if you have an immediate cash flow issue (especially if you have another debt running much greater than 6.1% interest or need to raise a bit of cash quick) othewise you just burden yourself with the interests if you are paying back money anyway.
Edited by: "splender" 13th Dec 2017

hgraham444 m ago

Unfortunately, I don’t think I’ll have a job by April, so this won’t affec …Unfortunately, I don’t think I’ll have a job by April, so this won’t affect me



It may do, see my point above.

splender22 m ago

It may do, see my point above.


Thanks, I’ll keep that in mind

£50,000 debt if you couldn't afford any monthly repayment for up to 30 years at 6.1% interest rate applied dailyon the outstanding balance, grows to about a third of a millon £ after 30 years. If you don't smell something, coffee rat, turkey, money, etc. I would be surprised.

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Edited by: "splender" 13th Dec 2017

hgraham44 h, 44 m ago

Thanks, I’ll keep that in mind


If you’re not on benefits then SLC will contact you to provide details of how you are funding yourself. Happened to me when my Universal Credit stopped a month before my current job, and unfortunately because I was unable to get a “proof of benefit” paper without signing back on, I had to send them my bank statement with details of funds (been doing a load of temporary jobs declared and during the time I was on UC, plus some crazy scrimping (with help from HUKD deal hunting )). SLC and HMRC then sent me a letter about a few days of starting the current job which was just a confirmation of job starting letter. Just a heads up of some of the things to watch out for.
Edited by: "hass123" 13th Dec 2017

Original Poster

splender3 h, 57 m ago

£50,000 debt if you couldn't afford any monthly repayment for up to 30 …£50,000 debt if you couldn't afford any monthly repayment for up to 30 years at 6.1% interest rate applied dailyon the outstanding balance, grows to about a third of a millon £ after 30 years. If you don't smell something, coffee rat, turkey, money, etc. I would be surprised.[Image]


After 30 years it's no longer payable. I got the following from an old Independent article:

"when it comes to repaying your student loan, there is a cut off point of 30 years from the day you graduate. What this means is that no matter how much of your loan you have repaid (whether it be £10 or £30,000) the remaining balance will be wiped once the 30 years is up."

Original Poster

Personally I hate being in debt to anyone and try to repay everything ASAP. However, I do understand that everyone's situation is differentv if you are having cash flow problems it's worth considering, else I'd suggest leave it as is (as splender said), else the interest will ultimately increase your loan.
Edited by: "mi5tery" 13th Dec 2017

We were told that effectively it is interest free because the interest rate tracks the rate of inflation....I think people lied to us about that to promote university....

Turns out there are shortages of graduate jobs and some employers really don' want to hire graduates

Original Poster

Benjamin3uk11 m ago

We were told that effectively it is interest free because the interest …We were told that effectively it is interest free because the interest rate tracks the rate of inflation....I think people lied to us about that to promote university....Turns out there are shortages of graduate jobs and some employers really don' want to hire graduates


I remember being told exactly that too! Though I think it was more the fact that they completely got rid of grants as opposed to trying to promote uni.

mi5tery19 m ago

After 30 years it's no longer payable. I got the following from an old …After 30 years it's no longer payable. I got the following from an old Independent article:"when it comes to repaying your student loan, there is a cut off point of 30 years from the day you graduate. What this means is that no matter how much of your loan you have repaid (whether it be £10 or £30,000) the remaining balance will be wiped once the 30 years is up."


After 30 years, other than your personal loan wiped, everyone knows,
can you smell something else such as coffee, rat, tax, deficit on a balance sheet ?

Answer is after smelling, some folks will have to pick up the total bill or deficit, the folks are all of us nationally. But instead of £50,000 now , it is then a third of a million pound each.

Th
Benjamin3uk23 m ago

We were told that effectively it is interest free because the interest …We were told that effectively it is interest free because the interest rate tracks the rate of inflation....I think people lied to us about that to promote university....Turns out there are shortages of graduate jobs and some employers really don' want to hire graduates


That's why it is emerging a new repeated phrase, " yet another mis-selling scandal." The opportunity cost of a third of a million pound in 30 years for each student, for the fraction who never earn enough to pay back any significant amount is sustaining a larger university population than it should, giving jobs which shouldn't exist.
Edited by: "splender" 13th Dec 2017

Problem is students age 17 or 16 are picking a.course they don't know much about
Half a page in a university prospectus and speaking to people from.the university who give a biased perspective that their course is the best and feigned interest. Universities are businesses they'e not your friend and people need to remember that

Nothing for me will more then likely knowing my lick is get a letter saying I owe them more

I wouldn't worry about trying on pay it off. Corbyn is going to pay them all off for us by taxing a handful of rich people a few more pence in the pound.
Happy days.

Chiptivo18 m ago

I wouldn't worry about trying on pay it off. Corbyn is going to pay them …I wouldn't worry about trying on pay it off. Corbyn is going to pay them all off for us by taxing a handful of rich people a few more pence in the pound. Happy days.



Not sure about Corbyn but someone political has to take the cash bull by the horn and write it off, as Corbyn could be six-foot under in 2030 - 2040 , view the chart table picture I have in my previous comment.

The deficit is sitting on someone's balance sheet and is growing exponentially. The sooner someone writes it off, the better it will be. Why spend £50,000 fees if you could not afford it today and if you spent it, defer its repayments as it will be a tax burden of £311,000 each student for every tax payer in 30 years' time when it is written off for those who will never earn enough.

By 2030 -2040 it would be huge, it is big enough a problem to write it off now, it will be mega painful by 2030.
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