By Ruth Lythe
PUBLISHED: 05:02 EST, 25 July 2012
Tens of thousands of former students were overcharged by scarcely 40 million in tyro loan repayments final year, even even though they had already paid off their university debts.
The Student Loans Company snatched an median of 577 any from more than 63,000 students who had, in fact, free their loans - a record sum, new total performed by Money Mail reveal.
The statistic, disclosed by a Freedom of Information request, shows the amount by that English former students were overcharged had doubled in only two years from 15 million to 29.9 million.
Last year, Scottish former students were overcharged an median of 454 and Welsh former students by 509, adding to the 37 million total.
Nearly 3 million people make repayments to the Student Loans Company, having acquired median debts of 13,000 from their studies.
Deductions are routinely taken automatically out of their pay packet, but it is up to former students to examine their change and surprise the Student Loans Company when the loan is paid off. If they flop to do so, the definite will go on to take the cash.
Once former students mark they are overpaying, the definite will palm back the money with interest. But Money Mail has seen dozens of reports from students forced to wait for months for their money.
A Student Loans Company orator says the overpayments are caused by a delay in the time it takes is to information to be eliminated from HM Revenue Customs to the company. The body hopes to renovate this system, but the orator could not say when this would happen.
He updated that former students are sensitive when they come in the final two years of loan repayments and can opt to pay by send withdraw to confine the luck of overpaying.
But tyro member called for change, notably in the light of the outrageous 9,000-a-year fee fees many students will face from next year.
Many think tyro loans are interest-free, but the amount you are charged may be aloft than that on a personal loan or mortgage. This means the size of your loan can hurriedly balloon. For example, those who took out loans before 1998 are right away profitable fascination at 5.3 pc a year.