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The Student Loans Company (SLC) is overcharging almost 80,000 graduates by ten per cent every year – leaving them £580 out-of-pocket each time. Automatic income contingent repayments (ICR) begin when a graduate begins to earn over a certain amount of money once they complete their studies. The repayments are collected through the UK tax system where borrowers remain in the UK. However, as the SLC only receives information from HM Revenue and Customs (HMRC) about what customers have repaid once a year – after employers have finalised their annual tax returns – there is a ‘time lag’ which means thousands of people nearing the end of their repayments overpay, unless they opt for payment by direct debit. http://www.independent.co.uk/student/news/student-loans-company-is-overcharging-almost-80000-graduates-by-580-every-year-baker-tilly-finds-10431230.html
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