Student Loan Refunding on the Rise

The Student Loans Company has been forced to pay £ 107million for new graduates then continue making payments to them, even after their student debt had been fully cleared.Graduates could have extra money to them

Last year, a total of £ 22million was taken without the need for graduates, the overpayment half to get to 557 pounds, the BBC heard. This marks a significant increase in the number of 2009 which was paid a total of £ 19million.

The issue was discussed in the context of the Radio 4 consumer affairs program, you and yours.

Speaking to the fair, the Student Loans Company said the overpayments usually occurred because of a delay in communications between the company and HMRC. He explained that as he was waiting to receive details of HMRC on payments made during the financial year as a whole, the new estimates of the amount could not be done until next June.

This means that graduates could see being expensive during this transition period.

A notable example was a graduate, the data have been retained by SLC, returned a total of £ 96,000, although the SLC emphasizes that a miscalculation of this magnitude is "bizarre."

Under the program, graduates trying to get their money back have faced major problems with a number of complaints that the system is too complicated maze of forms and phone calls.

A young man, Nicholas Lativy, he discovered that he had 4000 pounds for what it says is a "broken system".

Describe the process for four months to recover their money, as "very frustrating and stressful enough," saying he was asked repeatedly to explain the details of your case to a number of different representatives of SLC, both by phone and in writing. In the end, Mr. Lativy was forced to take time off work to provide the SLC with the large amount of information required, the instructions which were often confused and contradictory, he said.

Commenting on the case, the SLC said that has since changed the system, which enables graduates coming to the end of their amortization period to switch to debit transactions to control more closely.