Consumer champion Martin Lewis is urging student loan borrowers to check whether they could be owed money after more than 1.1 million people made overpayments during the last tax year.
The founder of MoneySavingExpert (MSE) has highlighted four circumstances where people may be entitled to refunds from the Student Loans Company (SLC), including those who made repayments despite earning below the annual income threshold.
Overpayments and refunds
In the latest MSE newsletter, Martin shared the experience of a woman named Clara who received a £2,150 refund after checking whether she had overpaid. She said: "I thought I couldn't have possibly overpaid as my payments came out of my salary automatically. I spent 5 minutes applying 'just in case'... what a surprise!"
Martin wrote: "Student loans are overly complicated, and that results in a) millions unwittingly overpaying, and b) successive governments using the complexity to try and increase the cost."
He added: "We've learnt that over 1.1 MILLION student loans were overpaid in the last tax year alone, and millions more before that."
Four reasons you could be owed a student loan refund
According to MSE, borrowers may be entitled to reclaim money under the following circumstances.
1. Annual earnings below the repayment threshold: Some 1,052,000 borrowers made repayments during 2025/26 despite earning below their annual threshold. This can happen because deductions are calculated through payroll each time someone is paid, rather than on their total annual income. People who receive bonuses, work overtime or have fluctuating earnings could be affected.
2. Repayments started too early: Around 36,000 borrowers were affected by deductions starting before they were due. Repayments should normally begin from the April after leaving a course, provided earnings exceed the relevant threshold.
3. Wrong repayment plan: Some 14,000 people were affected by incorrect repayment plans, potentially resulting in higher deductions. Borrowers should check which plan they are on and contact SLC if they believe an error has been made.
4. Repayments continued after the loan was cleared: Around 56,000 borrowers continued making payments after their student loan had been fully repaid. SLC normally arranges refunds automatically, but borrowers can contact the organisation if they have not received their money.
Student loan refunds in Scotland
People in Scotland are also covered by the refund rules, although most Scottish borrowers are on Plan 4, which has a different repayment threshold from other plans operating across the UK.
The current Plan 4 repayment threshold is £33,795 per year, or £2,816 per month. Borrowers repay nine per cent of their earnings above the relevant threshold. Someone whose total annual earnings fall below the threshold could still have made repayments during individual months when their income was higher.
Borrowers can check their outstanding balance, repayment history and repayment plan by signing into their online student loan account through GOV.UK. People who made repayments despite earning below their annual threshold can request refunds online for previous tax years. Other types of refunds may require contacting SLC directly.
Anyone checking older repayments should use the income threshold that applied during the relevant tax year, rather than the current amount. MSE also advises voluntary additional repayments cannot normally be reclaimed. Borrowers should be aware receiving a refund will increase their outstanding student loan balance. Whether reclaiming the money is financially beneficial depends on individual circumstances, including whether they are likely to repay their loan in full.
