06 December 2023 , 08:55
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Martin Lewis has issued a crucial message to over one million people who have overpaid on their student loans during the 2022/23 tax year.
He explained on his ITV show that these individuals are entitled to a refund due to four main reasons. One reason is being put on the wrong payment plan by employers. A viewer shared her experience of this situation and received a refund of £1,303.
Another reason could be starting loan repayments despite not earning over the threshold, which currently stands at £27,295 if you have a Plan 2 student loan. This could happen due to fluctuating monthly salaries.
Some people had money deducted from their pay even after fully repaying the loan, while others started repayments too early. Repayments should only begin in April following graduation, but errors can occur.
Martin emphasised that if you've overpaid, there's no need to leave the money where it is. He described student loans as a "graduate tax" and said the refund is "absolute cash in your pocket."
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He told the Martin Lewis Money Show Live on Tuesday evening: "There’s no limit to how far back you can claim student loan overpayments, so there are likely millions of people who are owed money.
"I did a video about this which went viral on social media so we’ve had an enormous number of successes. "This is easy to do. Many people need the cash flow, and there’s lots of people for whom taking back the overpayment doesn’t impact what you pay in future, so get the money in your pocket."
If you're eligible for a student loan refund, it should be processed in 28 working days after you submit your application - but there may be delays over Christmas. Check that you've overpaid first and get all the documents you will need ready.
There may be delays due to a large amount of calls, Martin warned. You will need to contact the Student Loans Company (SLC) on 0300 100 0611 (for Wales it's 0300 100 0370 and +44 141 243 3660 from overseas).
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]