Graduates Overcharged on Student Loans Repayments

Student Money Saver today brings students the latest news on student finance as an increasing number of graduates are reimbursed after being overcharged on student loans repayments.  

(United Kingdom – 6th October 2011) Student Money Saver today brings students the latest news on student finance as an increasing number of graduates are reimbursed after being overcharged on student loans repayments.  The news came this week that more than £107 million has been repaid to graduates who have been making payments on their student debts. 

Since the increase in tuition fees there has been a noticeable increase in the number of students who are re-evaluating their life after sixth form and college.  Earlier this year the government announced that some universities would start charging as much as £9,000 a year in tuition fees and as a result, many are choosing to work or travel after their A Levels.  With the latest news regarding overpayments on finance, yet more students are being forced to reconsider their future.

The powers that dictate student loans have been found to have overcharged some graduates on their loan repayments as much as £96,000.  Although this has been described as a rarity, graduates on average are expected to have overpaid by around £557 this year.

It seems that those coming to the end of their payments were likely to overpay due to the fact that extra payments couldn’t be calculated until the end of the financial year.  The process for refunds is just as complicated according to graduates that have fallen into the trap.  In some cases numerous phone calls and several faxes were made along with a number of personal documents before any progress was made.

Last year £22 million was overpaid by graduates and in 2008/2009 up to £19 million was made in repayments.  With the figure on the rise it is no wonder that the process for repayments is changing.  Former students reaching the end of their repayments have been given the option to make payments via direct debit but of the 106,000 offered this option, just 32,000 took it up.  Unless a new procedure is found graduates could again expect to make extra repayments next year as well.

For more information and news on the latest student money saving options and advice as well as some fantastic student offers visit the Student Money Saver.

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