Over a million UK graduates could reclaim cash after overpaying student loans
Over one million university leavers could potentially get back £1,000s after checking if they have accidentally paid more than they should have on their loan
Students across the UK could potentially reclaim extra cash due to overpayments on their student loans.
A Freedom of Information request by Money Saving Expert revealed that over one million university graduates overpaid on their student loans in the last tax year. Typically, student loans are deducted from your monthly salary if you're employed.
However, your wage needs to exceed a certain threshold before you actually start repaying it. In some instances, your wage may fluctuate throughout the year, with some months surpassing the threshold and others not.
Wage threshold for loan repayment
It's crucial to check whether your total annual income actually exceeds the threshold - if it doesn't, then you can reclaim. The threshold varies depending on when you graduated and where in the UK you're based - for England, it is as follows:
| Years you went to university | Threshold a month | Threshold a year |
| 1998 - 2011 | £2,082 | £24,990 |
| 2012 - 2022 | £2,274 | £27,295 |
| Postgraduate | £1,750 | £21,000 |
It's also worth verifying if you've been placed on the incorrect student loan repayment plan. Those who began university since 1998 should be on Plan 1, Plan 2, or Plan 4 loan - the type will determine how much you repay on the loan.
Check with your employer to ensure you're on the correct plan - if you were placed on the wrong one, you could be paying more than necessary.
How to reclaim any overpaid student loan
Don't miss...
Everyone with a pension warned over ‘backdate’ trick to avoid tax [LATEST]
Six things Martin Lewis says students need to know about 'Plan 5' loans [INSIGHT]
Martin Lewis issues advice to pension savers 'to avoid heart attack' [LATEST]
If you discover that you've overpaid your student loan in the 2022/23 tax year, you can apply for a refund online. To do this, you'll need to log into your online repayment account here.
Next, choose 'request a refund'. Once processed, SLC will investigate if you're due any refunds from previous tax years.
If you are owed money, it should appear in your bank account within 28 days.
It's crucial to remember that if you've already fully paid off your loan, applying for a reclaim will reopen the loan account, potentially extending the loan term.
If you're reclaiming because your employer has placed you on the incorrect student loan plan, you should get in touch with SLC to discuss the refund process. This can be done by calling 0300 100 0611.
