CSLM20045 | SL repayments: underpayments and overpayments: SA borrower - student loans overpayment

The Student Loans Company automatically receive details of the Student and or Postgraduate Loan amount calculated on the SA return and set this against the borrower’s loan account. If the amount exceeds the amount outstanding it will result in an overpayment. The Student Loans Company will check whether HMRC requires the excess to cover other SA liabilities before releasing the overpayment to the borrower.

If HMRC do not require the excess to cover other SA liabilities

The Student Loans Company will

• Send a ‘credit balance’ letter to the borrower, informing them of their overpayment

• The borrower must respond to Student Loans Company with their bank details before the repayment will be released.

If HMRC require the excess to cover other SA liabilities

East Kilbride Student Loans Unit will

• Reduce the Student and or Postgraduate Loan liability on the return by the amount of the overpayment

• Create and send a revised SA statement

• Remove any informal standover for the year (if necessary)

The credit will appear on the SA statement but will not be identified as referring to Student and or Postgraduate Loans.

The Student and or Postgraduate Loan payment will remain on the SA statement until the borrower contacts HMRC to request repayment if required.