Seventy-one thousand student loan customers are being contacted by the Student Loans Company (SLC) after it was discovered that technical problems had led to incorrect interest calculations on their loans, affecting about 1.3% of current Plan 2 borrowers. The errors, which resulted in some individuals facing increased loan balances, have now been rectified.
The SLC and HM Revenue and Customs (HMRC) have apologised for the inconvenience caused and assured customers that they do not need to take any immediate action as a result of these corrections. Crucially, their regular repayment amounts will remain unchanged due to these identified issues.
Two distinct technical problems were pinpointed as the root cause of the incorrect interest computations: a SLC glitch where the wrong income information was used during the interest calculation process and an HMRC issue with income reporting that affected individuals earning through both PAYE and Self Assessment.
The technical errors have been resolved, ensuring accurate interest application to loan balances going forward. For customers whose balances have increased due to these corrections, they will be directly informed by the SLC. Adjustments to loan balances will appear in customers' next annual statements, available online before the end of September.
Both organisations have confirmed that if a customer has fully repaid their loan, they will not be required to recommence repayments. Those who may have overpaid due to these errors will receive a refund as part of the resolution process. The SLC and HMRC have reaffirmed their commitment to addressing such issues promptly and responsibly.