• iconNews
  • videos
  • entertainment
  • Home
  • News
    • UK News
    • US News
    • Australia
    • Ireland
    • World News
    • Weird News
    • Viral News
    • Sport
    • Technology
    • Science
    • True Crime
    • Travel
  • Entertainment
    • Celebrity
    • TV & Film
    • Netflix
    • Music
    • Gaming
    • TikTok
  • LAD Originals
    • Say Maaate to a Mate
    • Daily Ladness
    • Lad Files
    • UOKM8?
    • FreeToBe
    • Extinct
    • Citizen Reef
  • Advertise
  • Terms
  • Privacy & Cookies
  • LADbible Group
  • UNILAD
  • SPORTbible
  • GAMINGbible
  • Tyla
  • UNILAD Tech
  • FOODbible
  • License Our Content
  • About Us & Contact
  • Jobs
  • Latest
  • Topics A-Z
  • Authors
Facebook
Instagram
X
Threads
Snapchat
TikTok
YouTube

LAD Entertainment

YouTube

LAD Stories

Submit Your Content
More than 850,000 graduates owed student loan refunds after making ‘incorrect’ repayment

Home> News> UK News

Published 07:24 3 Aug 2023 GMT+1

More than 850,000 graduates owed student loan refunds after making ‘incorrect’ repayment

New figures show hundreds of thousands of students are owed refunds

Jess Hardiman

Jess Hardiman

More than 850,000 graduates are owed student loan refunds after analysis found many people had been making ‘incorrect’ repayments.

As outlined on the UK government website, how much students repay from their loan depends on their income – the amount they earn, including bonuses, overtime and other factors, before tax and other deductions.

“You’ll repay a percentage of your income over the ‘threshold’ for your type of loan, depending on how often you get paid,” it says.

Currently, English and Welsh graduates who started a course in or after September 2012 begin paying their loans back when they earn £27,295 or more a year – something that’s known as Plan 2 loans.

Advert

However, following changes announced in February last year, English students starting university courses in 2023/24 will have to start paying back the money back once they are earning £25,000.

How much students repay from their loan depends on their income.
PA

According to figures obtained by website Save the Student, which provides ‘free, impartial advice to students on how to make their money go further’, a total of 856,475 graduates in the UK made student loan payments in the 2021/22 financial year despite earning below the repayment threshold.

The new figures, which were secured through a Freedom of Information (FOI) request to the Student Loans Company (SLC), found that just two percent (18,136) of those who made overpayments for this reason have claimed a refund.

The data also suggests that 203,064 graduates repaid their student loans under the wrong plan type, while 39,000 accidentally made early repayments and 52,300 continued to make repayments after clearing their balance in 2021/22.

Advert

Graduates who make repayments after clearing the balance are supposed to be contacted by the SLC or issued with a refund automatically, but according to Save the Student, this is not always the case.

Tom Allingham, Save the Student’s money expert, said: “I’d strongly urge all graduates to check if they’re owed hundreds of pounds in the form of a student loan repayment refund.

“In the case of graduates repaying their student loans despite earning below the threshold, this tends to be because their salary has varied throughout the year.”

He added: “If your total earnings at the end of the financial year are still below £27,295, you’re entitled to a refund of any repayments you made.

“But whatever the reason, if you believe you may have made incorrect student loan repayments, it’s usually worth claiming a refund.

Advert

Save the Student is urging people to check if they're owed money.
John Lamb/Getty

“Graduates with Plan 2 loans in particular should seek to do this, as around 80 percent of them are expected to have some or all of their balance wiped by the government after 30 years. As such, there’s little danger of graduates claiming money back, only to repay it again later.”

The SLC claimed the 856,475 ‘below threshold payments’ are not taken by mistake, saying student loan repayment is based on annual earnings, with deductions taken each pay period where the earnings are above the threshold – usually weekly or monthly.

It said it can only refund those who earn less than the annual threshold at financial year-end, as per the regulation.

A spokesperson for the SLC said: “SLC administers student loan repayments as per the regulations set by the UK and devolved governments.

Advert

“Deductions are taken by the employer in every pay period, generally weekly or monthly, when repayer earnings are higher than the threshold for the pay period. If a repayer is having repayments taken too soon, or they are placed on the wrong plan type, they should contact their employer, to correct this error.

“The overwhelming majority of repayments are taken correctly and SLC routinely refunds customers who have over repaid. In the last year, SLC automatically refunded 77,973 customers and will continue to do so on a monthly basis.

“Any customer who has had a deduction in a previous tax year and whose earnings were below their annual repayment threshold should check their online account, and if they are eligible for a refund, contact SLC.”

Featured Image Credit: Mark Draisey Photography/John Lamb/Getty

Topics: UK News, Money, Students

Jess Hardiman
Jess Hardiman

Jess is Entertainment Desk Lead at LADbible Group. She graduated from Manchester University with a degree in Film Studies, English Language and Linguistics. You can contact Jess at [email protected].

X

@Jess_Hardiman

Advert

Advert

Advert

Choose your content:

2 hours ago
3 hours ago
  • Office of the Governor of Utah via Getty Images
    2 hours ago

    More text messages between Tyler Robinson and roommate released by authorities as he's charged with murder

    Prosecutors read out a text message chain allegedly from Tyler Robinson

    News
  • YouTube/Dr Wealz
    2 hours ago

    Shocking simulation shows what happens to your body when you don't eat for a week as man shares major impact it had

    A YouTube simulation shows what happens to your body during a fast after Justin Dorff reached 'God Mode'

    News
  • Office of the Governor of Utah via Getty Images
    3 hours ago

    Tyler Robinson charged with aggravated murder and 6 other charges in connection with death of Charlie Kirk

    Prosecutors said they'd be seeking the death penalty

    News

    breaking

  • Kevin Dietsch/Getty Images
    3 hours ago

    Extortionate amount Donald Trump’s security for state visit to the UK is costing

    The state visit is likely to cost a few million

    News
  • More than 670,000 young people could be owed thousands from huge money pot they don't know exists
  • Martin Lewis gives exact date your student loan debt will be wiped out
  • British student, 23, jailed for life in Dubai after 'very stupid mistake' has fundraiser removed for major reason
  • More than one million Brits at risk of £1,000 fine for ignoring simple drivers licence rule