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Graduates face changes to student loan repayments
Wednesday, 09 July 2008
Changes are being made to the student loan system to stop those in graduate jobs making hundreds of pounds worth of overpayments, it has been claimed.
At the moment, the Student Loans Company (SLC) takes nine per cent of everything over £15,000 that a graduate earns directly from their payslips, reports the Daily Mail.
However, some have found that this does not stop when their debt has been paid off, leaving them out of pocket.
According to the newspaper, this is because the SLC needs to notify HM Revenue and Customs before the claims are stopped, something that does not always happen.
It also states that the process to get such money back is often complicated.
Speaking to the Daily Mail, one graduate said: "I was owed £700. I sent them everything they needed to get a refund but now I see that payments are still coming out of my pay. I told the SLC, but they blamed my employer. But I know that it is not their fault."
The newspaper states that automatic payments will now stop a year before the debt is cleared in an attempt to prevent this.
Meanwhile the Observer reports that the latest survey from the Association of Graduate Recruiters shows that extra-circular activities are increasingly important to firms offer graduate jobs.