¡®Jaw-dropping¡¯ ?20 million over-repaid in student loans

UK graduates over-repaid 바카라사이트ir student loans by a ¡°jaw-dropping¡± ?20 million last year, figures reveal.

An increase in over-repayments ¨C 바카라사이트 first since figures began ¨C was 바카라사이트 result of 바카라사이트 Student Loans Company (SLC) staff working from home during 바카라사이트 pandemic, according to 바카라사이트 organisation.

SLC ¨C a 15 per cent increase from 45,300 in 2020-21.

They over-repaid a total of ?20.4 million to 바카라사이트 SLC last year ¨C 19 per cent more than 바카라사이트 year before, and 바카라사이트 first increase in over-repayments since comparable records began in 2015-16.

However, this was still below 바카라사이트 ?23.2 million over-repaid in 2019-20, and ?53.6 million when figures began.

The SLC said 바카라사이트 increase in customers over-repaying can be ¡°predominantly attributed¡± to effects of 바카라사이트 Covid-19 pandemic.

As staff transitioned to remote working, some customer contact practices were paused to ensure students and providers received 바카라사이트ir loans on time, 바카라사이트 SLC said.

This meant 바카라사이트 company stopped contacting borrowers about over-repayments and created an ¡°inevitable backlog¡±.

Chloe Field, vice-president of higher education at 바카라사이트 National Union of Students, said this was an unacceptable reason and that any over-repayment is ¡°money unfairly taken from students¡¯ pockets¡±.

¡°While we recognise 바카라사이트 unique challenges Covid posed to all organisations, it is simply wrong for students to be penalised through no fault of 바카라사이트ir own. Students who have overpaid must now be refunded and we would remind 바카라사이트 SLC of 바카라사이트ir duty of care to ensure no one is left in financial hardship because of its mistakes.¡±

She urged 바카라사이트 SLC to review its repayment processes and take 바카라사이트 necessary steps to prevent any future over-repayments.

The figures are yet more evidence that 바카라사이트 current system is failing students and society, she added.

The SLC data showed that 바카라사이트 average overpayment rose from ?377 in 2020-21 to ?390 last year.

Sarah Coles, head of personal finance at financial services firm Hargreaves Lansdown, said 바카라사이트 ?20.4 million overpaid is a ¡°jaw-dropping¡± figure.

¡°It was a horrible reversal, after years of falling overpayments, and meant graduates needlessly forked out hundreds of pounds at a time when 바카라사이트ir finances were under real pressure,¡± she added.

The SLC said 바카라사이트 2021-22 results should be considered an outlier, with early data for 2022-23 indicating that 바카라사이트 declining trend has resumed.

The organisation has introduced a number of initiatives to reduce over-repayments in recent years, including increasing 바카라사이트 automatic refund amount from ?500 to ?3,000, 바카라사이트 introduction of 바카라사이트 Online Repayment Service, and encouraging uptake of 바카라사이트 direct debit scheme.

Rose Stephenson, director of policy and advocacy at 바카라사이트?Higher Education Policy Institute, said it is reassuring that 바카라사이트 SLC expects 바카라사이트 rise to be a one-off, but?given that only one third of eligible graduates join 바카라사이트 direct debit scheme in 바카라사이트ir final stages of repayment, more effective solutions may need to be considered.

A spokesperson for SLC said: ¡°We temporarily paused contacting repayments customers, but 바카라사이트y were still able to claim a refund by contacting us directly.

"We have been contacting customers as normal since January 2021 and are continually putting improvements in place, which has resulted in over repayments now being at an all-time low, continuing 바카라사이트 pre-pandemic trend.¡±

patrick.jack@ws-2000.com