A bereaved student who suspended their university course was required to repay loan debt immediately with no additional support, an investigation can reveal.
A UCL student, who we will call Rachel, suspended her course after the death of her mother back in April. She spoke to The Cheese Grater about her struggles dealing with Student Finance, the lack of support she received, and her concerns for students in similar positions.
Rachel was immediately contacted by Student Finance England (SFE), who demanded she pay back over £2000, a significant portion of her third year maintenance loan, as it was considered an overpayment.
Student Loans Company (SLC), who administer loans and set guidelines, state on their website that overpayments occur “if you’re paid more student loan or grant than you’re entitled to.”
In Rachel’s case, SLC determined they indeed had overpaid as she suspended midway through her third year.
Bereavement is not a listed reason for withdrawal or suspension according to the SLC guidelines. It could be argued that this has prevented vulnerable students from accessing additional loan support and appealing overpayments.
Rachel described her experience with SFE as “grim”, saying, “I rang the number and was sent to the wrong service, meaning I had to re-explain my situation to another [SFE staff member].
“Having to explain to a stranger, over the phone, that my mum had died and I couldn’t complete university and then being dismissed once was hard enough.”
Rachel felt that SFE “harassed” her for a month when her initial payment did not go through. She received numerous phone calls, emails, and a letter telling her she must get in contact, despite already arranging the payment plan.
After calling SFE, they later revealed that the payment was not going through due to an error on their systems. This bombardment of emails and calls caused Rachel “needless panic and stress”.
No additional support
The UK Government’s website states that students who suspend their studies for a “serious personal reason” can call SFE to see if they are eligible for additional financial help.
Rachel explained her situation to staff and asked if there was any additional support she could receive; she told us that staff denied such support was available.
“[The staff] spoke to me as if I was lying and I was in a really unstable place mentally,” Rachel revealed.
For students suspending their courses, the higher education provider can select a reason code for their suspension.
For undergraduates, there are only two reasons: Health or Other. Students who suspend their course for health reasons are eligible for a further 60 days of maintenance loan support from their last attendance.
However, on their website, SLC states that pregnant students are excluded from this additional support: “Students taking a break due to pregnancy or to give birth are not eligible for the 60 days of maintenance loan support available for health reasons.”
Bereavement appears to fall under the “other” category, as Rachel was provided with no additional support by Student Finance.
These broad “reason codes” arguably provide limited opportunity to account for extenuating circumstances and have potentially prevented vulnerable students from gaining access to 60 additional days of maintenance loan support.
Rachel told The Cheese Grater, “I can gather it’s a tricky situation, but I think if UCL can have policies in place for serious bereavement like my own then I don’t see why SFE can’t.”
“It almost overrides all universities’ attempts at well-being when SFE can ignore it and take the money from you.”
Students not appealing
Freedom of Information data obtained by The Cheese Grater reveals that only 83 students have been successful in appealing their overpayments since 2017.
FOI data revealed that the vast majority of students do not appeal their overpayments, with only 1,202 students appealing their overpayment since 2017/18. This is despite over 260,000 students withdrawing or suspending their course during that period.
We asked Rachel if she considered appealing her overpayment given her extenuating circumstances to which she said: “I didn’t appeal it due to how harsh the woman who handled it was with me.”
“There’s a lack of understanding from SFE that you don’t simply leave uni and abandon the city after suspending your course. I had a lease to finish with rent to pay, commitments I’d made way in advance to fulfil.”
The website states that overpayments must be paid “as soon as possible” and there is no minimum you have to earn before you pay it back.
SLC’s policy guide on overpayments states “SLC have a duty to ensure that taxpayers’ money is being used for the purposes intended: that only those who are eligible for support receive funding, and that no one receives money to which they are not entitled.”
“There is an expectation that public sector organisations should always pursue recovery of any overpayments, irrespective of how they came to be made.”
While these strict rules may be justified in some cases, many would argue that a student who has lost a parent and is now financially independent should be given greater compassion by the relevant bodies.
One of many cases
Rachel is currently in the process of repayment, but she emphasised that “other students may not be in the financial position to pay back the loan.”
“If I had to use the little inheritance I got to pay it back, what does that really entail for someone who doesn’t receive any inheritance?”
Students shared similar experiences on Reddit: “SFE sent out a letter to me stating they overpaid me £2,052 and that I must pay it back ASAP…
“I am very overwhelmed as I am chronically ill and have only started again after a whole year off.” This student revealed they were earning minimum wage.
FOI data suggests that many others could be in a similar position, with 24,174 recorded cases of students suspending courses with overpayments on the grounds of health. This figure increases up to 54,038 for students suspended on other grounds, a category which may include bereavement.
Rachel’s story highlights why there is a need for clearer guidance and support for vulnerable students in similar positions.
A spokesperson for SLC said: “At SLC, we are committed to delivering empathetic and supportive customer service, so we are concerned to hear about this student’s experience.
“Despite repeated requests, the necessary details haven’t been shared to allow us to fully investigate. We encourage the student to get in touch, so we have the opportunity to review the situation thoroughly and explore any additional support we may be able to offer.
“The Higher Education Provider (HEP) is responsible for submitting a withdrawal or suspension notification, and we are required to reassess the student’s entitlement and recover any overpayments, in line with Student Finance Regulations, set by the UK Government.
“While bereavement is not generally considered a reason to extend funding during a period of suspension, we recognise the impact it can have. If a student is experiencing financial hardship as a result of their suspension, there are support options available, such as deferring repayments or applying for continued payments during the suspension period.
SLC has a charter for Customers Requiring Additional Support which outlines our commitment to supporting customers in vulnerable circumstances and those customers who need additional support.”
Background Information:
When a student suspends their studies, their HEP informs SLC, and all future payments are cancelled. The student’s entitlement is recalculated, which may result in a loan and/or grant overpayment depending on the timing of the suspension and payment dates. The level of detail about a student’s situation can vary, so we would encourage students to get in touch with SLC directly if they believe they are eligible for an extension to their funding.
Students who suspend due to medical reasons may be eligible for an extension of up to 60 days, provided they meet the relevant criteria. While bereavement is not generally considered a reason to extend funding during a period of suspension, if it affects the student’s health, it may be taken into account.
The method of repaying any overpayment depends on its type:
If the student returns to study, the overpayment is deducted from future entitlement.
If the student does not return, amount to be repaid.
SLC is committed to improving the experience for all customers, with a particular focus on supporting those who may be vulnerable or require additional help. Our Charter for Customers Requiring Additional Support outlines our commitment to providing tailored assistance in these circumstances. Introducing SLC’s Charter for Customers who Require Additional Support – GOV.UK
Key Facts & Figures
- 260,000 students withdrawing or suspending their course since 2017/18
- Only 1,202 students appealing their overpayments since 2017/18
- 24,174 suspending course with overpayments due to health reasons
- Only 83 students successfully appealing
This article appeared in CG93
