The simple way to check you've not overpaid your student loan

0
5
The simple way to check you've not overpaid your student loan

Many graduates are owed hundreds of pounds after making more student loan repayments than they needed to.

Thousands of former student could be eligible for the cash, which is easy to claim back, reports the Liverpool Echo.

An investigation by MoneySavingExpert.com in 2018 discovered that 100,000 people in the three previous tax years had started repaying their loan too early – and there are other ways you can unintentionally overpay too.

There are three main ways you can overpay and be entitled to a refund:

You’ve paid more than the total amount you owe

HM Revenue and Customs (HMRC) will tell your employer to stop taking repayments from your salary when you have repaid your loan in full. It can take around four weeks for salary deductions to stop. This means you may pay back more than you owe.

Your annual income was below the threshold

You can ask for a refund if you made repayments but your income over the whole tax year (April 6 to April 5 the following year) was less than:

  • £19,390 a year for Plan 1
  • £26,575 a year for Plan 2
  • £21,000 a year for Postgraduate Loan

If your annual salary is less than this, your employer may still deduct repayments – for example if you get paid a bonus or overtime.

You started making repayments before you needed to

If you started uni from 1998 onwards and were a full-time student, you should only have started repayments from the April after you left your course at the earliest, regardless of how much you earned.

How can you claim the refund

To reclaim the cash all you have to do is contact the Student Loans Company. The easiest way is through Facebook or Twitter. Just give them your customer reference number and say you think you’ve overpaid. You can also call them on 0300 100 0611.

The SLC says the process will be smoother if you have your payroll number, PAYE reference number and payslips from when you were overpaying to hand, but if not, just try and contact them anyway as many have successfully reclaimed without paperwork.

There are no restrictions on how far back you can claim, so while many reclaiming will be recent graduates, there’s nothing to stop you doing this even if you overpaid years ago.

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here