Home / Money Articles / Could you be receiving a student loan rebate?

Could you be receiving a student loan rebate?

student loan rebate
Loading 

Written by:

Do you have a student loan taken out in the 1990s? If so then you may be one of 58,000 former students who are set to be issued a student loan rebate or have part of their debt written off.

Why might I get a refund?

An error made by Student Loans Company (SLC) over a number of years means that many students who took out loans before 1998 were issued with correspondence that may have breached the Consumer Credit Act, which was modified in 2008. People who had missed two or more repayments were sent letters detailing the arrears they owed. However, people attending university before 1998 generally took out more than one loan and so these letters should only have referred to one individual loan at a time. Instead these Notices of Statement in Arrears pointed to the combined amount owed across multiple loans.student bank accounts

The long-running paperwork blunder, which involves correspondence sent out between 2008 and 2013, came to light late last year when the government sold the loans to debt management consortium Erudio Student Loans. The Student Loans Company states that nobody paid anything more than they should have due to the error but as people weren’t notified about arrears in the correct way refunds will be made.

Wait, my loan was sold?

Yes, in November last year the government sold off the remaining mortgage style loans taken out between 1990 and 1998. The sale formed part of the government’s reduction of Public Sector Net Debt. The mortgage-style loans were sold to Erudio Student Loans Ltd and those affected should have received a letter notifying them that their loan had been transferred. Erudio is regulated by the same governing body as the Student Loans Company is and no changes were made to the terms and conditions or calculation of interest rates on loans.

How much might I get?

With 58,000 former students affected, the gaffe will obviously take some time to clear up but the Student Loans Company says it will write to all those concerned by the end of May this year. If your loan account was in arrears between 2008 and 2013 you can expect a refund of any interest or charges paid since you received your arrears letter until the loan was sold to Erudio in November 2013. The amount refunded will vary from borrower to borrower and your letter will clarify how much you will receive and how that number has been calculated.

How will it be paid?

Former students with an outstanding balance on their loans will have the amount owed to them deducted from their debt. If your loan was paid off in full between 2008 and 2013 then you will receive a refund from Erudio Student Loans. SLC will write to you to arrange this.

What if I wasn’t in arrears?

If you took out a mortgage-style student loan prior to 1998 and kept up with repayments then you won’t be entitled to any refund. Only people who received one or more letters regarding their arrears between 2008 and 2013 are affected.

Share

Comments

About Maria Brett

About Maria Brett

Maria is a freelance writer with over 10 years' experience producing content for a variety of publications and websites. When not working or looking after her two gorgeous sons, she can usually be found playing flugelhorn in a brass band, helping out at her local hospital radio station, shouting at the television while watching Formula 1, at the cinema or plonked on the couch with a cold glass of wine.

Website: Maria Brett

View all posts by