Martin Lewis shares student loan refund millions could claim

Finance expert Martin Lewis has revealed that over one million people overpaid on student loan repayments last year. There were 1.1 million overpayments in the 2023/24 tax year based on figures obtained from the Student Loans Company by MoneySavingExpert, he shared.

In his Money Tips Email, the expert identified four common reasons why graduates may be overpaying and issued guidance on how to claim back the money, which could add up to hundreds for some, the Mirror reports. The advice applies to anyone who might have overpaid in previous years, Martin explained, with four million people known to have overpaid before.

As the expert explained, the issue often arises if individuals earn under the annual repayment threshold but have made repayments during months where they earned more than the monthly threshold. "It's common for those who don't work a full tax year (eg, your salary's above the threshold, but you only worked nine months), or are on variable incomes or commissions," he pointed out.

Moreover, Martin noted that some may be making payments on the incorrect student loan plan if their employer is uncertain about which plan they should be on, meaning they've been placed on the default scheme with a lower threshold. In these cases, Lewis advises checking with your payroll department and reclaiming any overpayments from the past.

In some instances, you could begin repaying your student loan earlier than necessary if you've shared an incorrect course end date or if there has been a mistake by your employer. "You're usually only eligible to start repaying in the April after you left your course," the expert said.

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Additionally, it is possible repayments may have continued even after your loan was fully repaid. Martin's advice is clear: "You could still repay even after your loan is cleared due to pay-as-you-earn (PAYE) timings. If this does happen, you will automatically be repaid, so don't need to reclaim. Yet better still, to prevent this, you can set up a Direct Debit for the last two years of your repayments."

Those wanting to get overpayments refunded should know that some claims can be processed online, while others may require a phone call. Martin recommends having your payroll number, PAYE reference number and any old payslips ready, with guidance more on MoneySavingExpert's website.