UK graduate receives £400 for student loan error

A recent error by the Student Loans Company (SLC) left a graduate with unnecessary debt. Jennie Bradbury, 38, from Stoke-on-Trent, took out a student loan in 2013. The loan was supposed to be forgiven after she completed her degree, but a system failure meant it wasn’t removed for four years. Jennie’s loan should have been written off in September 2019. She contacted the SLC multiple times but was told it would happen automatically. However, the SLC informed her in 2020 and again in 2021 that her loan was still active. Frustrated, Jennie received a small apology payment of £25 and later complained to higher authorities. This led to a recommendation for the SLC to increase her compensation to £200. After further complaints and an investigation, the SLC delayed the loan write-off until September 2023. The Parliamentary and Health Service Ombudsman (PHSO) found Jennie was one of around 4,000 affected by the same error. The Ombudsman noted the SLC had agreed to pay her a total of £400 in compensation. Rebecca Hilsenrath, the Ombudsman, highlighted the distress caused to students by this system error. She emphasized the need for the SLC to learn from these issues to improve their services. Currently, there is no automatic compensation scheme for others affected. However, individuals can file complaints with the PHSO for possible redress.