Student loan help

Looking for a bit of advice please.

FoL quite distressed today as she has been chased by a debt collection agency, apparently in connection with her student loan (taken out when she studied nursing). I paid off all her outstanding balance when she graduated.

However apparently the Student Loan Company have decided that for 2 of her 3 years they gave her too much money that she wasn’t entitled to in their post calculation and now wish her to repay this to the tune of £3.3k.

The debt collection agency acting on their behalf explained to her that it was likely but not proven to be based on my income rising between the initial loan being taken out and the subsequent years which they indicated would have changed her entitlement.

I’m not convinced as I thought when I paid her loan balance off that that was that.

Any advice/ info on what the actual rights they have to do this retrospectively and after loan closure would be very helpful.

Will this help?
UK Student Loans Repayment Calculator - 2021 (

On the understanding that I know nothing about anything, the first thing I would do is ask them to show you the clause in the loan papers that entitles them to do such a thing. I’d also be surprised if such entitlement continued after they’d agreed a settlement figure.

If you have legal advice with your house insurance or similar I’d get in touch. If you paid off the balance it sounds wrong that they can now chase you for something else

I would be asking for exact statements and proof of calculations. Bet they can’t produce that.



If it was a commercial entity then a full and final settlement might be enforceable, but they are not, so it probably isn’t.

It shouldn’t have got to a debt collection agency already though - have they not sent any prior documentation?

It all sounds rather dodgy. I agree with Dom, get a detailed calculation. They need to prove the debt.

This. Are you sure it’s not a scam?

I’m sure the govt student loan company sold their debts to a commercial mob a good while back and they’ve got a reputation for aggressive, and wrong, recovery

This says send a Prove my debt letter.

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not quite correct - some of it was sold

parts of the debt book were sold. From memory the 1990s debt was sold to Erudio. Other bits of the debt book due for repayment 2002-2006, were sold to another company in 2017

I think 3 tranches of the old mortgage style loan books were sold between 1998 and 2013.

Yes the private companies are aggressive about collecting.

The government did intend to sell off some of the more recent income contingent loan books. Sale was delayed until 2017, and covered student loans that entered repayment between 2002 and 2006.

Thanks for the advice chaps, we will write them a letter asking for breakdown/ proof that there is a liability to pay.

Scarlett is pretty distraught as she agreed a repayment plan with the company which now means that her recent pay rise from band 5-6 has been completely wiped out for a year, and she was using this to save up towards a deposit for a house.

Show them evidence of the previous settlement, request proof of debt and inform them you are happy to go to court. Pending the courts judgement you will be pushing for time to pay (£1 a week)

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I can’t understand this, if the loan has been repaid in full then how can more be due ? They may have lent more than entitled but if all repaid then no harm done.

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No that’s what I want to get to the bottom of.

She got pressured on the phone to go through an affordability questionnaire and then a payment plan which she accepted so by default they can know try to say that she has accepted the debt.

I am furious with their use of these kind of tactics and quite willing to turn up to their place of business and give them a bloody hard time about it.

The bit I don’t understand is how anyone gives out any information of any sort over the phone. The caller may be who they say they are but could be anyone. I drill it into any young people I know that they barely even acknowledge their own existence and tell the caller to put it in writing before hanging up.
I would start by demanding a transcript and audio copy of the phone call before she is prepared to consider the matter further.

If she hasn’t signed anything I doubt it would stand up in court.

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Just tell her to change her mind about the repayment plan. I wouldn’t pay them a penny until they’d proved the debt.

She’s entitled to time to consider things and to take proper advice. That would apply even if she had signed something. Tell them the debt is denied until they can satisfy you that it is owed.


Yes, if it’s a loan, that was paid off, rather than a grant, then I really don’t get this. :thinking:

It’s just contract law.
You have to see the contract. Original t and c.
It will all be in there.

It’s that simple. You can’t unilaterally change it afterwards, unless there are some pretty tight clauses with defined reasons.

I’d be requesting the agreement dated at the time it was taken out. Work forwards not backwards.
It may even be legislated, but it’s the primary source material you need!

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