Have you been overpaying your student loan?

Most people who attended UK universities will see student loan deductions being taken from their monthly payslips – but what if we told you over one million ex-students accidentally overpaid in the last tax year alone? 

In this blog, we share recent advice from MoneySavingExpert.com so you can find out whether you’re due a refund from the Student Loans Company. 

Have you overpaid?

Here’s a quick series of questions to help you work out whether you’ve overpaid your student loan over the last few years: 

1.Did you attend university between 1998 – now? 

 If before this period, then this advice does not apply. If yes, carry on reading.

2. Are you on the right payment plan? 

According to Martin Lewis, one of the most common reasons why university leavers end up repaying too much of their student loans is because their employer has put them on the wrong repayment plan. The type of plan you’re on depends on where you live and when you started your course. If you’re unsure, you can find out which repayment plan you’re on here. 

3. How much money do you make? 

You could be owed money back from SLC if you’ve been making repayments to your student loan when you weren’t supposed to be. This is because you have to earn above a given annual threshold before you start paying back the loan. Again, this amount will depend on which plan you’re on. 

• Those who went to uni between 2012 and 2022 must make £27,295 or more a year to qualify for student loan repayments. 
• If you studied between 1998 to 2011 then the current threshold is £22k (although this has increased each year). 
• From Northern Ireland? Started uni between 1998 to 2011? Your threshold is currently £22,015 a year (again, this has risen each year). 
• If you’re from Scotland and started higher education any time from 1998 then you won’t start paying back your student loan until you earn £27,660 or more a year. 

Check out The Money Saving Experts’ excellent post for further insight. 

4. Have you finished paying off your student loan? 

Lucky you! But make sure you double check the SLC aren’t still deducting payments from your salary. It can happen due to the timing of PAYE. Don’t worry, you will automatically be refunded this money over time but it’s definitely worth reclaiming manually if you need it sooner. 

5. Did you start paying your student loan back prematurely? 

Whether you filled in the student loan section of the HM Revenue & Customs starter checklist form incorrectly, or your employer made an administrative error on your behalf, this may have led to you paying back student loan before it was necessary to do so. 

Regardless of the reason, if you think you might have overpaid your student loan, we recommend getting in touch with the Student Loans Company on 0300 100 0611 (for Wales call 0300 100 0370 and +44 141 243 3660 if you’re based overseas). 

Before getting in touch, make sure to log into your student loan account where you can see a history of the transactions made thus far. 

We hope you found this article of use – remember to watch Martin Lewis’ video for a more detailed explanation of how student loans work and the next steps for those who believe they have overpaid. 

In terms of umbrella providers: Mint can help! Get in touch today via email at [email protected] to get the ball rolling.