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Original poster

Student loan refund

217 replies

thehillswerebright · 09/02/2022 13:46

Just thought I would share this as I know a lot of people are struggling just now and I only found out about it recently.

If you have a student loan with SLC and don't make the repayment threshold for the year then you can claim back payments you have made. You can find the threshold limits on the gov website. I think in scotland it's £25k. If you get a refund then it means the balance goes back onto your loan so that's something to think of. I called today and they could go back about 10 years and check it was very simple.

OP posts:
LivingDeadGirlUK · 28/02/2022 21:25

@GinandGobbledegook

I've nearly paid mine off. Am I better to keep any below threshold payments on my account to get it paid off quicker?
Yes if you don't need the money right now the refund amount gets taken off your overall debt the next year so it does help towards paying it off.
BernadetteRostankowskiWolowitz · 28/02/2022 21:25

@Notdoingthis

Thank you OP. Though I am a bit confused. Shouldn't I be trying to pay it off? If the balance is higher I will have more deducted from my pay in the future won't I? More interest. Though I left uni in 2005, so would I ever pay it back? It's confusing!
You aren't deducted based on the balance of the loan, but on your salary. So all that will happen is you will repay it over a longer period, not that you will pay more each month.
LivingDeadGirlUK · 28/02/2022 21:31

Sorry @GinandGobbledegook I didn't explain that very well, I'm tired lol. if you claim back the below threshold payments the value goes back on your loan, so you are increasing how long you will be making payments for in exchange for a lump sum.

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General money
Original poster
thehillswerebright · 28/02/2022 21:36

@LivingDeadGirlUK yeah that's why you need to take it into account. I remember reading that if it's not paid back in a certain amount of years or by a certain time after you graduate that it gets wiped, not sure if that's just scotland though.

OP posts:
BernadetteRostankowskiWolowitz · 28/02/2022 21:45

Mine won't be written off til I'm 65

flipflopjump · 28/02/2022 21:56

Remember not to ask for a refund if you don't NEED the money now. If you get a refund, the amount you owe will go up, as will the interest you pay.

BernadetteRostankowskiWolowitz · 28/02/2022 21:57

@flipflopjump

Remember not to ask for a refund if you don't NEED the money now. If you get a refund, the amount you owe will go up, as will the interest you pay.
But if you are a low earner and will always be paying it off for the next 30 years, might as well have the 500 quid now for elec bills
AwkwardPaws27 · 28/02/2022 22:31

@flipflopjump

Remember not to ask for a refund if you don't NEED the money now. If you get a refund, the amount you owe will go up, as will the interest you pay.
I'm on Plan 2 - they add far more interesting each month than I can repay (over £100 a month at present; while I was studying they were adding over £200 a month in interest).

As Bernadette says, if you are unlikely to ever pay it off then it makes no difference whether I owe them £10,000 or £50,000 - the monthly repayments are set in relation to salary, not debt amount.

I'm going on maternity leave partway through the next financial year so won't actually earn above the threshold - but I will automatically have deductions taken until I move onto SMP, so may as well claim back what I pay earlier in the year.

VladmirsPoutine · 01/03/2022 10:19

Question: If you claim back now, can you also claim back next month and the month after that? Presuming they'll give you a refund but keep deducting in line with whatever you're paying anyway?

BernadetteRostankowskiWolowitz · 01/03/2022 10:29

My understanding is its done annually, after 31 March each year.

Somethingsnappy · 01/03/2022 10:46

Thanks for this thread op!

queenofcauliflower · 01/03/2022 21:05

Thanks again everyone.

Does anyone happen to know the threshold for this 21/22 tax year?

And as I'm employed and self-employed, I guess I'll have to wait until I've submitted my tax return to see my earnings/sl payments?

Any advice appreciated, thank you!

Yoyooo · 01/03/2022 21:14

What information do you have to have ready for them when you call?

pupcakes · 01/03/2022 21:24

So happy other people have got their money easily too!

I owe about 40k, I'm never going to be a high earner so having it put back on the balance was a no brainer for me.

Flippydip · 01/03/2022 21:36

Ooo I need to try this, thanks! I had a big bonus this year and the student loan repayment that month (and tax mainly, if I'm honest) nearly made me fall over. Of course my pay dropped back to normal the following month so I wonder if I can claim that back. I'll give it a go!

sunflowerdaisyrose · 01/03/2022 21:50

@Flippydip I'm in similar situation as was made redundant and paid in lieu of notice - I should owe some student loan but not as much as they took. Tax too was loads so hoping I'll get some of that back too!

Original poster
thehillswerebright · 01/03/2022 22:06

@queenofcauliflower I'll try and link the picture of the current thresholds. I'm assuming there won't be much change. I think it's different in scotland.

Student loan refund
OP posts:
Original poster
thehillswerebright · 01/03/2022 22:06

@Yoyooo I literally had nothing, couldn't even remember my customer number

OP posts:
polkadotpixie · 02/03/2022 15:03

@thehillswerebright Thank you so much for posting this! I've just spoken to them and I'm getting £290 back 🙌 I still owe over £25K and I'm unlikely to ever pay that back as I'm not a high earner so I may as well get the refund

pupcakes · 02/03/2022 17:23

Excellent, @polkadotpixie

queenofcauliflower · 02/03/2022 19:29

Thanks you @thehillswerebright, I'm in Scotland but unsure how to find the figures for here.

Great new @polkadotpixie!

Original poster
thehillswerebright · 02/03/2022 20:35

@queenofcauliflower I'm in scotland too, I found it on the web possibly on the Scottish government website to SAAS🤷‍♀️ it's £25000 for this year. It's the same student loan company though that you phone etc

OP posts:
VladmirsPoutine · 03/03/2022 11:27

Thank you OP!! I managed to claim back a small amount!

youvegottenminuteslynn · 03/03/2022 11:32

Thanks OP for sharing this info - could you / anyone else confirm what information is required for the call? Can they work from a national insurance number only?

Handsnotwands · 03/03/2022 11:42

For anyone on the old style pre 2000 (? ish) loans - if you are repaying but close to the threshold check you are still above the deferment level.

I was literally £60 over threshold so was repaying. i checked recently and the threshold has shot up to c. £36k, it was around £32k. i stuck in a deferment application straight away and it was granted in days