Overpayment of student loan - immediate repayment requested

[Mattk]

My son took the decision to go to Uni last year but after only one term (Sept to Dec) decided it wasn't for him.

He now lives at home with us and has no income of his own as my wife is suffering with depression and cannot be left alone during the day so he does not even sign-on.

The student loan company have contacted him demanding immediate repayment of £1000 overpayment.

We are not a well-off family and his decision to go to Uni was made in part due to the increased fees coming in to force later this year so we felt it was a case of 'now or never'.

Are they entitled to ask for immediate repayment? Surely this should simply be added to his student loan figure and repaid in installments in the usual way?

Any help or advice appreciated.

[ojread2]

yes, of course

You said "Surely this should simply be added to his student loan figure and repaid in installments in the usual way"
Is he going to uni this year instead? Why would they add it to his loan? IT should be taken away, surely?
It matter snot that you are not 'well off' (who is right now? it is because your son left education and therefore of course, the loan must be repaid
You have had from Dec until now to contact the right people and offer to repay it, why didn't you?

[Old_Geezer]

I'm not unsympathetic to your plight, but my non-expert opinion would be that an immediate repayment would be expected. It isn't free/cheap money until your son starts to earn. It's to cover the costs of an education that is now not being taken and so the loan would be no longer available.

[Mattk]

Ok but if we had thought for one minute that this could happen it would have been a large factor in the Uni decision.

AFAIK the loan was paid on a 'term by term' basis. He did receive an additional payment in January which was promptly taken back. The monies received would have been for accomodation and food etc etc. from Sept until December.

[ojread2]

Well, that could make a difference if it's term by term
Student loans went in to bank a/c earl this morning - has your son checked his?

[ojread2]

How much was the total of the loan? For the whole school year?

[cathfromsaron]

your son should sign on and get his stamp paid and also you should apply for carers benefits for the family!

with this proof of circum,stances, the loan board should be a bit more flexible, BUT if he ain't there he ain't a student! so the loan isn't really overpaid ... he simply isn't actually entitled!

[joannie10]

they would only be asking for immediate payment if he was paid something he was not entitled to. It would be worth contacting them and advising them of the situation and seeing if he can come to agreement. Loan he was entitled to shouldn't have to be repaid until earning over the threshold of something like £15k.

[ojread2]

I'm thinking that as joannie - worth asking mind

[joko]

you may be able to work out an agreement with them if you explain - but they are entitled to ask for it back

that you were unaware that they may do this makes no difference im afraid

that money is meant to last for 3 terms ... i was paid a years money in one lump sum so he 'should' have the rest left to simply repay it immediately - that he hasnt and has spent it, is not their fault either

if your son is skint - because he is not claiming a carers allowance or unemployement is also not their problem.

however i would present your case and hope they wil allow you to pay back in low installments - they wantge money back so they will probably accept something like this

also try cccs or similar - i am not sure of the rules but they may be able to help

[murraymints]

if your wife is on an incapacity benefit and she is so bad that she requires daily help then she ought to claim attendance allowance also and your son can then claim carers allowance and also get his ni conts paid...he would not qualify for job seekers if he is not available..and/or seeking employment..

[arwyn]

Student loans are paid every 3 months..

[Mattk]

Thanks all, much appreciated.
Feelings seem to be echoing my own. I don't know exact figures but it sounds like he was overpaid but hopefully when he explains, an agreement can be reached.

[lcg]

yes. such a large amount means he left uni at the start of a term and still spent the money! around £1k is payable 3 times a year. the uni will confirm to the student loan company of the date he left and of course they will want it back. they can take him to court to retrieve the balance as it is clearly set out in their terms and conditions, which would have been given to your son and he will have agreed that in the form of a signed contract. it is technically spending money which isn't yours and from central/local government - like benefits. he needs to contact them urgently to try and sort it out....if he ignores them, it will worsen the situation, but they cannot set the bailiffs on you or your wife as it is your son's debt. he is 18, and as an adult should sort this matter out himself (particularly if you are struggling in these harsh times and have problems of your own). it is certainly what i would say to my son. he pays me rent and housekeeping out of his uni money and knows he is responsible for his own finances/decisions. sorry if that sounds harsh, but you can't fight all your kids battles for them.

[lcg]

btw...student loans are rarely paid yearly and/or overpaid. because students get lump sums, if they leave their course early, the student loans company recoup money calculated on a daily basis from when they stop attending uni. that is why he is 'overpaid'. he owes the money and they do chase debts quite vigorously in my experience (i teach at a uni) and are mostly unsympathetic to personal circumstances. sorry - i don't mean to add to your stress, but he needs to act quickly for the best possible outcome of repayment. also, if he has a student bank account and overdraft, the bank are entitled to recoup any debts immediately as well. he is no longer a student and they will withdraw that service also - quite a common practice when people leave uni after 3 years and have accrued massive debts. you may need to talk to your son about this, too. if he is not honest with his bank, he may get deeper into trouble...as he will have signed a contract for that account which he will only be entitled to as a student. good luck, i wish your family well.