London Daily

Focus on the big picture.
Friday, Oct 03, 2025

I’m paying off my student loan each month but the debt keeps on growing

I’m paying off my student loan each month but the debt keeps on growing

Now I’m caught between the Student Loan Company and HMRC … and it says I don’t exist!

I’ve been paying off my student loan since 2010 in monthly instalments of more than £200 via PAYE, yet the balance keeps growing and interest charges are ballooning. The problem seems to have begun when I changed jobs in 2012. Three years later, I discovered that none of my payments had been applied to my account.

The Student Loans Company (SLC) told me that, according to HM Revenue and Customs’s records, I don’t exist. HMRC insisted it was an issue for SLC. I sent four years’ worth of payslips to SLC twice (it lost the first lot) and, after 12 months, £12,366 was deducted from my debt. That didn’t include the cumulative interest charges. SLC insisted I was liable for these even though they were applied to an erroneously inflated balance.

That was in 2019. Since then, I’ve been unable to log in to view my account. SLC has variously told me there’s a block on it, that it’s being investigated by HMRC, or, more recently, that it isn’t authorised to discuss the account over the phone. It also insists it is not authorised to send paper statements, so can’t establish what I owe.
EK, London


SLC passed me on to HMRC, which promised an urgent investigation. It appears that when you changed jobs your national insurance number was merged with a stranger’s, so repayments were sitting in limbo for nine years with interest accumulating on the balance that, but for the error, should have been paid off. What’s truly alarming is that SLC and HMRC tried to offload you on to each other for the six years that you’ve tried to resolve the problem, and action was only taken when I got involved.

HMRC says: “We apologise and have updated our records to reflect the student loan repayments made to date. We have also arranged a £400 redress payment, and put measures in place to prevent a recurrence of this issue.” SLC, which did not provide a comment, has meanwhile decided that you owe £1,800, but has yet to explain whether this includes the unfairly applied interest. Obviously, you want the unsubstantiated sum written off. Your plight would be troubling enough if it was a one-off. However, other graduates have complained to me that they’re being charged for debts they’ve already paid, or blocked from checking their balance.

Londoner CE received confirmation from SLC that his loan was paid up in 2019. However, deductions from his salary resumed without explanation in June of this year. Again, SLC and HMRC blamed each other. “HMRC told me it had received notification from SLC in May to deduct student loan repayments,” he writes. “SLC said this must have been an error and that they would notify HMRC to stop taking payments and I would receive a refund from my employer.

“By September the payments were still being deducted, and SLC claimed that a ‘mortgage-style’ loan, from Thesis Servicing on my account, was to blame. But it confirmed it had no record of anyone with my name.”

“In my final call with SLC, it said it could not provide any more details about this mysterious loan and that all it could do was notify HMRC again, but this would take up to two months. HMRC says it hasn’t heard from SLC. So I’m stuck in a bureaucratic nightmare which has, so far, cost me £2,000 that I can ill afford.”

Meanwhile, EW of London has been trying since 2018 to find out how much she still owes. “Every time I am told there is a balance error so there is suppression on my account, which means they can’t provide me with an accurate statement, or an estimate of when this will be resolved,” she writes.

It took media involvement to get SLC to acknowledge an error in CE’s case. Infuriatingly, after ignoring and misleading him for three months, it notified HMRC to stop the payments and promised a refund the day I contacted it. It says “He fully repaid his loan in 2019; the additional repayment deductions, taken from his salary, were the result of an administrative error by SLC. We wholly apologise for any inconvenience.”

In EW’s case it claimed that when there is a discrepancy between a customer’s repayments and their balance, access to the accounts are “temporarily” restricted, and statements suspended to protect customers from getting misleading figures. It didn’t say what this discrepancy was and miraculously, this three-year “temporary” restriction was ended as soon as I questioned it.

SLC says: “We have apologised for any inconvenience caused as a result of the restriction placed on the account, and can confirm that she is now able to access her balance and statements online, following an update to her account.”

Online reviewers report similarly troubling shambles with their student loan accounts. Customers who exhaust SLC’s formal complaints process without a satisfactory resolution can ask to be escalated to an independent assessor, although they have to rely on SLC to do this for them.

Newsletter

Related Articles

0:00
0:00
Close
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
Nvidia Pledges Up to $100 Billion Investment in OpenAI to Power Massive AI Data Center Build-Out
U.S. Signals ‘Large and Forceful’ Support for Argentina Amid Market Turmoil
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
Vietnam Faces Up to $25 Billion Export Loss as U.S. Tariffs Bite
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Indonesia Court Upholds Military Law Amid Concerns Over Expanded Civilian Role
Larry Ellison, Michael Dell and Rupert Murdoch Join Trump-Backed Bid to Take Over TikTok
Trump and Musk Reunite Publicly for First Time Since Fallout at Kirk Memorial
Vietnam Closes 86 Million Untouched Bank Accounts Over Biometric ID Rules
×