Overall objectives
We are responsible for the effective and efficient management of public funds and must therefore make all firm, fair and reasonable efforts to recover any overpayments made to students.
We will be transparent in our recovery operations providing an encouragement to students to notify us immediately of any change in circumstances which could result in an overpayment - for instance, a change of course or withdrawal. The undernoted is an extract from the declaration that a student is required to read, understand and accept when submitting the 2012-2013 application for student support:
- I will tell the Student Awards Agency for Scotland immediately if my circumstances change in any way that might affect any amount which I have received, may receive or had paid on my behalf.
- I agree to repay any amount which I have received, or had paid on my behalf, which is more than the award that was due to me.
- I agree to tell SAAS immediately if I do not enrol, or withdraw from my course of study.
We will agree repayment arrangements appropriate to the financial circumstances of the individual and will not cause unnecessary financial hardship. We may however, if necessary, employ solicitors, sheriffs officers and tracing agents and seek court decrees, to secure repayment of public funds. We will not transfer the debt to third party collection firms.
Categories of overpayment
We are conscious that overpayment can occur for a number of reasons. The following categorisation is intended to provide guidance on the degree of flexibility to be employed in the recovery of overpayments.
Inaccurate or incomplete information provided for application. Late notification of withdrawal or failure to matriculate/commence course
The student is responsible for the accurate completion of his/her application and the timely notification of a change in circumstance. Overpayments arising from inaccurate, incomplete or late information provided by the student or student's parents/partner will be recovered, if identified quickly, by adjusting downward future student support payments for the current year or from the next year's bursary award. If household income evidence suggests that recovery in the next year will not be possible (i.e. income is too high to permit a bursary) then a monthly repayment agreement should be immediately set in place. This may be at a low level while the student completes their studies with an expectation that monthly payments will increase when the student enters employment.
Deferment (delay in repayment) will not be offered and further support will not be awarded until a repayment agreement is in force.
Overpayment due to mistakes/confusion between SAAS and the student
Overpayments should be recovered immediately if identified quickly by adjusting downward future student support payments for the current year or from the next year's bursary award. If household income evidence suggests that recovery in the next year will not be possible (i.e. income is too high to permit a bursary) then a monthly repayment agreement should be immediately set in place. This may be at a low level while the student completes their studies with an expectation that monthly payments will increase when the student enters employment.
Deferment until the student completes their studies should only be offered, with the agreement of a SAAS Manager, when risk of financial hardship can be demonstrated. The deferment agreement will be passed to the Student Finance Recoveries Team who will record the overpayment and send a reminder letter to the student, each year, until their studies are completed, when a repayment arrangement should be put in place.
Processing error by SAAS
We aim to process student support applications quickly and correctly. However, errors can occur and when they do must be corrected as quickly as possible. However, where errors take some time to identify, we must recognise that this creates additional difficulties for the student and can increase the amount of overpayment to be recovered. Flexibility will be used in resolving such cases.
Overpayments should be recovered immediately, if identified quickly, by adjusting downward future student support payments for the current year or reducing the next year's bursary award. If household income evidence suggests that recovery in the next year will not be possible (i.e. income is too high to permit a bursary) then a monthly repayment agreement should be immediately set in place. This may be at a low level while the student completes their studies with an expectation that monthly payments will increase when the student enters employment.
Deferment may be offered with the agreement of a SAAS Manager. The deferment agreement will be passed to the Student Finance Recoveries Team who will record the overpayment and send a reminder letter to the student, each year, until studies are completed and then agree a repayment arrangement with the student when their studies are completed.
In exceptional cases, the Chief Executive may decide that the student had been given an 'expectation' of funding from the organisation and will review the case on its merits.
Recovering an overpayment
There are two ways for us to collect an overpayment. We may reduce a future award for student support or ask for direct payments to be made. In some exceptional circumstances, it may be appropriate to do both.
The most we will deduct from a future award is £1,000 unless we agree with the student that a higher or the full amount of the overpayment should be deducted, or repayment arrangements have not been met.
Direct payments can be accepted for the full value of the overpayment, or monthly payment arrangements agreed to take account of individuals financial circumstances.
We employ recovery arrangements that:
- Are timely
- Consider value for money
- Use third party agents as appropriate including solicitors, tracing agents and sheriffs officers.