The Student Loans Company (SLC) has refunded tens of?millions of?pounds to?graduates in?just a?few months since a?simplified online service was launched this year.
show that 216,300 UK?graduates were refunded a?total of ?61.1?million in?the 2023-24 tax year.
The data also reveals that ?78.9?million has been refunded in the 2024-25 tax year so?far.
The most common reason for a refund is a graduate making a repayment despite earning below the annual threshold. This was responsible for ?26.5?million of the total in 2023-24 and 102,200 of the customers.
The SLC said it had made “significant improvements” to the below-threshold refund process, including contacting customers who are eligible for a below-threshold refund in the 2023-24 tax year. It?has emailed 653,000 customers who are eligible for such a refund for the last tax year.
In May, the company introduced a simpler, digital service to allow customers to request a below-threshold refund via their online account.
Since then, the service has helped 248,000 customers who made repayments while earning less than the threshold get refunds totalling ?61.6?million.
Steven Darling, the SLC’s customer experience director, said: “With a below-threshold refund being the most common reason why a?customer might be eligible for a refund, we’ve made it quick and easy to request a refund through the online account.
“I would encourage customers to keep their contact and bank details up to date in their online account to ensure they don’t miss any key communication regarding refunds.”
Other reasons for refunds being paid out include graduates having been placed on the wrong repayment plan, making premature repayments or continuing to repay after their balance had been cleared.
With the cost-of-living crisis still ongoing, Tom Allingham, from the website Save the Student, said there has arguably “never been a better time” for graduates to check if they are owed money.
“Regardless of how you might have overpaid your student loan, if you believe you’ve done so, it’s usually worth claiming a refund,” he said. “Many are still feeling the squeeze of the cost-of-living crisis, and reclaiming a few hundred pounds could be a welcome boost.”
