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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 10400
Experience:  I have been practising for 30 years.
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My daughter just graduated from the university. She has been

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Good afternoon,
My daughter just graduated from the university. She has been contacted by the Student loan company regarding overpayment of her grant. They demanding a payment immediately by credit or debit card. The overpayment was a fault of the organisation, especially the actual assessment took very long time, my daughter was left without any meant for about four months while she was waiting for them to calculate my earnings. She is receiving a threatening letters on the weekly basis. She has no job at the moment and she is extremely worried, feeling humiliated and intimidated. What would you advise her to do?
Customer: replied 1 year ago.
The overpayment of student grant £2535.00
Customer: replied 1 year ago.
In the last letter my daughter has received, it states that she has to pay within 14 days of receipt of this letter, it is their intention to take action against her for the recovery of all outstanding monies.

Was she aware that she had been overpaid? If she was aware, did she then go and spend the money?

When did the overpayment come to light?

If the overpayment was 2535, how much was the actual amount of the grant?

Customer: replied 1 year ago.
During the second year the assessment was incorrect considering my earnings, after the reassessment, she was awarded a grant of over £2000. Third year reassessment (2015 - 2016) and over 5 weeks waiting for a response as to why her loan was late, my daughter was notified over the phone that her second year assessment was incorrect, however they reassured her not to worry about it until she is graduated.
Customer: replied 1 year ago.
During her first year my daughter received loan and grant 3 days before the end of her first semester and she was refused information as to why her application was taking so long despite calling up every day for 8 weeks due to 'confidentiality' on her application. I want to reiterate that she was followed the correct procedures throughout this stressful process, and now she feels penalised for the mistake of the organisation while being given extremely unrealistic expectations.

If this is their mistake and she accepts that it’s her mistake and she couldn’t reasonably have known that she had been overpaid, and if they take her to court, although they may get judgement in their favour, they are going to have to give her time to pay and hence, it would be remiss of them to take your daughter to court if she was paying them.

What she needs to do is to come to an arrangement to pay something.

She also needs to explain her own financial circumstances.

Unfortunately, if she were to go bankrupt, it doesn’t write off the ground for students. The reason is that many students were finishing university and going bankrupt just to wipe off the debt so the law was changed a few years ago to prevent that.

With regard to the threatening letters, right back and tell them that they are now harassing her and if they continue to write, the matter will be referred to the police with a view to having them warned under the Protection from Harassment Act and section 40 of the Administration of Justice Act 1970 which makes harassment of debtors a criminal offence.

They should then stop harassing her and it won’t stop them issuing court proceedings against her if they are minded to.

My suggestion would be to tell them that she will pay them £25 per month until such time as she gets a job and then, when she gets a job, she will increase it to £100 per month depending on her wages.

They will not accept that but regardless, keep sending the £25 every month.

If you want to be really bullish, your daughter can simply say that she’s got no money, that they can take her to court and make a bankrupt but she simply does not have the money to pay. They cannot get blood out of a stone.

Can I clarify anything for you?

Please rate the service positive. It doesn’t cost you anything but helps me greatly.

We can still exchange emails.

Best wishes.


F E Smith and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Do you think if would be possible to have the grant repayment added to her student loan repayment sum? Her advisers at the university had told her that this was possible at the time of the grant overpayment, but the rules changed the following year and she might have a case. Is this correct?

That is an excellent suggestion. Just keep paying in spite of their protestations.

The loan co can agree to any reasonable suggestion they like

Customer: replied 1 year ago.
Thank you so much for your help Mr Smith

I am pleased to have helped you. Best Wishes.