Thousands of graduates have even made BIG overpayments
TENS of thousands of graduates have been making unnecessary repayments for at least a year after their loan was paid off – due to the complex collection system.
Figures from the Student Loans Company indicate that more than 93,000 students overpaid £69 million in the last tax year – an average of £745 each.
Anna Hodgekiss, 36, had to jump through hoops to get £2,800 back after making unnecessary payments for ten months. It is easy to overpay because payments do not get passed to the Student Loans Company until after the end of each tax year, via Revenue & Customs. Health journalist Anna, who graduated in 2004, says: ‘I had no idea until a friend told me she had overpaid £3,000. I phoned the Student Loans Company and found I had been overpaying for ten months. I had to post off a year’s worth of payslips and ID to get it back.’ There is no compensation for those who overpay. Anna, from West London, should have been able to switch to payment by direct debit in the final months to avoid the overpayment trap. But she did not receive notification from the lender.
Anyone whose loan is due to be paid off in the next four to 23 months can request such a switch. Mike Pitcher, a communications manager, plans to do just that.
Mike, 34, of Gloucestershire, has been paying back a £17,000 loan accrued while studying at Sussex University. He says: ‘I got a letter last week telling me how much outstanding I have to pay. I have ten months left to go. Once I have made that last payment, I will have about £215 to spare each month.’