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Students: Loans

Volume 487: debated on Tuesday 3 February 2009

To ask the Secretary of State for Innovation, Universities and Skills what his most recent estimate of the amount of overpayments made in repayments of student loans is. (252591)

As of 31 March 2008, 89,971 borrowers with income-contingent student loans had overpaid a total amount of £47,913,611 since the scheme began. This represents an average of £533 per borrower. These amounts were refunded with interest by the Student Loans Company (SLC) when borrowers’ accounts were reconciled following the end of each financial year.

The SLC is putting a number of measures in place to help customers avoid overpayment. Later this year, all borrowers who are reaching the end of repayment will be given the option to make final repayments outside the tax system, via direct debit, to ensure they do not overpay. SLC have also introduced new guidance and tools, including an online calculator, to help customers work out their loan balance, and therefore when they are likely to pay their loan in full.