Students 'are overpaying their loans'

A large number of Aussies are paying too much when settling their student loan arrears, it has emerged.

Statistics provided by the Australian Taxation Office have indicated that $1.8 million was refunded back to Aussies in 2010-11 because they had already paid off their university debts without even realising it, National Features reports.

People fail to recognise they receive a five per cent bonus when they repay a lump sum of their loan. Universities also revise the amount of debt people have to settle and this can often work in favour of former students.

A recent study conducted by HSBC discovered Australia to be the most expensive place in the world to take a degree, so students are already shelling out enough money for their further education as it is.

AMP financial planner Dianne Charman told the news provider that people need to manage their loans more effectively.

It is vitally important that Aussies make sure they know how much is coming out of their student bank accounts each month.

Have a question about student banking? Ask the money gurus at Mozo Answers.ADNFCR-1761-ID-801485886-ADNFCR