Step by Step: How to Defer Your Overpayment with SLC
How to Defer Your Maintenance Loan Overpayment
If SLC has told you that you owe money back, don't panic. You have options.
What happened?
The Department for Education found that weekend-only courses were wrongly classified. Around 22,000 students received maintenance loans they were not legally entitled to. The DfE and SLC now treat those courses as distance learning. Distance learning students cannot get maintenance loans.
This was not your fault. Education Secretary Bridget Phillipson said it clearly. Providers let their students down through incompetence or abuse of the system.
Will I have to pay it all back at once?
No. SLC will not ask for a lump sum. The standard route is to deduct the overpayment from your future maintenance loan. So if you move to an eligible course, your next payments will be reduced.
But that can still cause real problems. Less maintenance money means less money for rent, food, and bills.
Can I stop them from deducting it?
Yes. SLC runs a Financial Hardship process. You can request a deferral. If approved, the recovery gets pushed back. Typically by one academic year.
How do I apply?
Here are the steps.
One. Call the SLC Overpayments Team on 0300 100 0628. Tell them you are in financial hardship. Ask for a Hardship Confirmation Form. They will email it to you.
Two. Fill in the form. Go to section 3. Look for this option:
"I have an overpayment on my account, and I'm still in study or have recently graduated."
Select it. Then answer the questions in 3.2. Use section 5 to explain your situation.
Three. Be specific. Explain how the deduction will affect your rent, your bills, your food budget. SLC needs to see that this causes real hardship. Not just inconvenience.
Four. Gather your evidence. You will need:
- Bank statements covering the last 90 days
- Your tenancy agreement or mortgage statement
- Payslips from the last three months (if working)
- Your latest Universal Credit letter (if claiming)
- Proof of any other benefits like PIP
- Evidence of debts or any debt management plan
Five. Upload everything to your SFE online account. The SLC website has a guide on how to upload documents.
Six. Wait for the decision. The Overpayments Team will review your case and let you know.
When can I do this?
Not yet, for most students. You need to be moved onto an eligible course in the SFE system first. Providers are submitting Change of Circumstance forms to SLC between 6 and 17 April. So check with your university or provider first.
Once you are on the new course record, you can start the process.
What if I stay on a weekend course?
If you do not switch to a qualifying in-attendance course, things work differently. SLC will set up a repayment plan with you directly. The Wonkhe analysis confirms this. You will not need to repay in a lump sum. The Repayment Recoveries Team will discuss affordable monthly amounts based on your income and expenses.
What about previous years?
That has not been decided yet. DfE and SLC are reviewing historic payments together. Ministers will decide what happens. We will update this page when that decision comes.
What does the OfS say?
The Office for Students published a statement on 2 April 2026. They told institutions that students should not face extra costs they did not expect when signing up. Where no solution can be agreed, students may be entitled to financial compensation. Students can complain to their institution. They can also contact the Office of the Independent Adjudicator after exhausting the internal complaints process.
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