Student loan refund service passes 1.6 million requests

More than 1.6 million requests for student loan refunds have now been made through the Student Loans Company's online refund service, which lets graduates who repaid when they did not need to claim their money back in a few clicks.

The milestone was confirmed today as the Student Loans Company (SLC) published its annual figures on student loan repayments through PAYE that are eligible for a refund.

£97.6 million back in people's pockets

Most people due a refund fall into the "Below Threshold" category. In the 2025-26 tax year, £97.6 million was refunded to 416,400 customers in this group, paid straight into their bank accounts.

Since May 2024, eligible customers have been able to apply for these refunds quickly through their online account. The SLC contacts eligible customers directly at the end of the financial year and invites them to request a refund for the previous tax year.

Jackie Currie, SLC Director of Customer, said: "At SLC, we're committed to delivering a modern, simple and digital experience that works for customers. The Digital Refund Service is a great example of how service improvements are helping repayment customers manage their loans more easily."

Why you might be owed money

Student loan repayments are taken from pay based on what someone earns in each pay period, such as a week or a month. If earnings go above the weekly or monthly threshold, a repayment is correctly taken. But if total earnings for the year end up below the annual threshold, the person can claim that money back. That often happens to people with irregular hours, seasonal work or a gap between jobs.

There are three other situations where a refund may be due:

• Credit balance: repayments taken after the loan has been fully paid off. These are refunded automatically if the SLC has up-to-date bank details.
• Early repayment: repayments taken before the date someone was due to start repaying, often because of an employer's admin error.
• Wrong plan: deductions taken under the wrong repayment plan. Customers can download an Active Plan Type letter from their online account to share with their employer.

Worth checking

With tens of thousands of students and graduates in Birmingham, many will have student loans. Anyone who thinks they may have overpaid can find the SLC's refund guidance, including a step-by-step video, through their online account.

The SLC cannot give financial advice and urges people to consider their own circumstances first: any refund is added back on to the loan balance.