Are You Owed a Student Loan Refund?

Annie

14th Nov 2024

Studying Time: 3 minutes

Save the Pupil not too long ago campaigned to encourage anybody paying again their scholar mortgage to test in the event that they’re eligible for a refund. There’s a £184m pot attributable to be refunded – right here’s all the pieces you have to know.

Why Are Refunds Owed?

How Much Could I Reclaim from Student Loan Overpayments?

How to Claim

Why Are Refunds Owed?

The Pupil Mortgage firm is owned by the Authorities. There are a number of explanation why somebody is perhaps owed a refund, starting from technicalities to errors.

The primary, and essential motive – including as much as over £140m of the refund pot – is for many who haven’t been incomes the minimal threshold however have been repaying anyway. This normally occurs when somebody does earn extra in a single month – similar to in the event that they obtain a bonus or extra time – and the system is triggered. They’re then charged a compensation every month regardless of not needing to pay. The system is meant to account to your annual revenue, so you probably have obtained extra in a single month than you normally would this may look to the Pupil Mortgage firm system such as you’ve had a everlasting pay rise.

The quantity at which that is triggered relies upon what Pupil Mortgage plan you’re on. It may be as little as incomes £21,000 a 12 months for submit graduate scholar loans, whereas different plans have thresholds starting from £24,490 to £31,395 a 12 months – you’ll be able to test which plan you’re on, and so which threshold you might be in, on the Gov website here.

One more reason for claiming a refund is that some college students is perhaps charged too early – similar to within the April instantly after graduating.

You may additionally be owed a refund in case your employer has continued to take deductions after your mortgage is paid off, or they have you ever paying an incorrect quantity.

How A lot Might I Reclaim from Pupil Mortgage Overpayments?

Whereas there’s a huge £184m pot of cash brought on by overpayments or incorrect funds, the precise quantity you possibly can obtain can fluctuate rather a lot.

Some individuals would possibly get again underneath 100 quid, whereas others might be owed £1000 or much more. All of it is determined by the explanation why you’ve had an overpayment, how lengthy you have been overpaying or paying incorrectly, and the way a lot you overpaid.

Methods to Declare a Pupil Mortgage Refund

When you assume you might need overpaid your scholar mortgage, otherwise you wish to test you probably have, it’s very easy! You’ll be able to log in to your account online here. Test your steadiness, how a lot you’ve paid, and the way a lot is left. Additionally, you will be capable of see you probably have overpaid and are due a refund. In that case, comply with the directions in your account to say a refund – over 400,000 college students have already completed so! (Don’t fear, the pot received’t ‘run out’ – individuals can solely get again what they’ve overpaid, so that you’ll get what you’re owed).

Nevertheless, earlier than you attain for the refund, assume twice if you have to request one. In fact, in case your mortgage is totally repaid and also you overpaid, then declare! Nevertheless, in the event you’re nonetheless paying again your scholar mortgage, retaining the overpayment in your account may cut back the size of the time period of the general mortgage – and cut back the quantity in curiosity you pay general. However, with the price of dwelling disaster nonetheless very a lot in impact, many individuals are selecting to take the refund as a result of they want the money now. Which is an efficient choice! Simply be sure to weigh up whether or not you want the money proper now, or if the overpayment to cut back the mortgage size and curiosity is what you’d favor as an final result.