Thursday 7th December 2023
Information to help you understand if you have overpaid your student loan and how to reclaim the money you have overpaid.
What is a student loan?
Since 1998 students have financed their studies through the student loan system. The repayment system is complicated due to the number of variables, different plans, and levels at which you need to start re-paying.
Student loan repayments
Once you have reached your personal threshold you will start paying back your student loan at 9% of your income over that threshold which currently stands at just over £27,000. A Freedom of Information request has shown that many graduates are overpaying their loans due to incorrect parameters being applied, reasons include:
- You repaid despite not earning enough
- You are on the wrong plan
- You’ve repaid but had money deducted
- You started repaying too early
How to reclaim overpayments
In the last tax year alone over 1 million university leavers overpaid their loans. The good news is the money overpaid can be reclaimed and often only takes minutes so, it is worth checking if you can claim.