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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:
TidyDancer · 04/03/2022 07:13

Ooh this is amazing. I'm going to call later today. I'm Plan 2 and definitely should be eligible!

Thanks OP!

(Is there a Mumsnet yearly awards ceremony? OP should get a special achievement one if so!)

Supersee · 04/03/2022 07:23

When do they open?! I've been paying my student loan since about 2000 and I'm positive there's been years where I haven't met the threshold 🤞

Beees · 04/03/2022 07:36

When do they open?!

8am until 5ish I think on a Friday.

They are also open on a Saturday for anyone unable to call today.

So pleased this thread is attracting more people, everyone with a student loan should read it.

Also really wish we could nominate people for awards of some kind on MN. Hills has done more for people in 1 thread than some of those getting actual honours.

Interested in this thread?

Then you might like threads about this subject:

General money
TidyDancer · 04/03/2022 07:53

The only sticking point for me might be this circled bit. I can't remember my full income going back that far so will need to get them to check.

Student loan refund
Beees · 04/03/2022 07:59

The only sticking point for me might be this circled bit. I can't remember my full income going back that far so will need to get them to check.

It won't be an issue. I literally only gave them my national insurance number and answered some security questions e.g place of birth and date of birth they could see everything else on their end. I didn't need to know my pay or my student loan number or anything else so it shouldn't be a barrier.

itrytomakemyway · 04/03/2022 08:00

Excellent post OP. This is especially importnat for anyone who gets paid a bonus all in one go in a month. My daughter is due back about £400 because she got a one of bonus at Christmas.

Supersee · 04/03/2022 08:12

£260! Thought it might be a bit more but still happy with that. Thanks OP!!

RewildingAmbridge · 04/03/2022 08:16

Just over £600! Thanks OP

killingwithkindness · 04/03/2022 08:23

I’m only entitled to £70 as earned above threshold for every other year but £70’s still better than nothing !

MrsMigginsCat · 04/03/2022 08:31

I wonder if I'll be entitled to a refund for the months I was furloughed in 2020/21? Will give them a call to find out.

Beees · 04/03/2022 08:40

@MrsMigginsCat

I wonder if I'll be entitled to a refund for the months I was furloughed in 2020/21? Will give them a call to find out.
It can't hurt to call and check. For the sake of a 10 minute on the phone I'd urge everyone who has a loan to give them a call. Grin
PinkTot · 04/03/2022 08:59

Thanks OP! I've just called and got a refund too.. nothing major, but it'll pay for a lovely dinner!

Im just getting my husband to call now too.

Thank you!

AllOfUsAreDead · 04/03/2022 09:11

I might phone but think I was probably over the threshold each year when it was lower than £25000 so probably won't get anything back. Don't really care if it goes up I'll never pay it off fully anyway since they reduced the amount I pay back now.

youvegottenminuteslynn · 04/03/2022 09:23

@Beees

The only sticking point for me might be this circled bit. I can't remember my full income going back that far so will need to get them to check.

It won't be an issue. I literally only gave them my national insurance number and answered some security questions e.g place of birth and date of birth they could see everything else on their end. I didn't need to know my pay or my student loan number or anything else so it shouldn't be a barrier.

Same. All I had was my NI number and they checked my records and could see instantly the amount I could claim. Took less than ten mins start to finish. OP you are the MN hero of the week!
AwkwardPaws27 · 04/03/2022 10:19

@AllOfUsAreDead

I might phone but think I was probably over the threshold each year when it was lower than £25000 so probably won't get anything back. Don't really care if it goes up I'll never pay it off fully anyway since they reduced the amount I pay back now.
I didn't think I'd have anything but called just in case - took 11 mins & got £120 (over 3 years). I think I must have paid extra some months when I had a backdated pay rise, changed jobs & got some untaken annual leave paid, or reclaimed expenses. I've never had a bonus in my life so definitely wasn't that Grin
MesMidgeMaisel · 04/03/2022 10:29

Another one coming on to say thanks OP! £148 winging its way back to me which is great timing as I'm on Mat leave Smile Thanks for letting us all know!

sashh · 04/03/2022 10:30

@EricScrantona

I don't understand. I thought the payments only came out of a monthly payslip if you're over the threshold.

Are you saying if some months the pay is different or six months of the year you don't earn enough you can reclaim what was over threshold for the six months you did earn more? Does that make sense? So say for 3 months you earn 3k each but for 9 months you earn 1k, as your annual is under the threshold you get what you paid in those three months back?

The fact I have a student loan means I should have the base intelligence to get this but hey ho!

That exactly.

So as a supply teacher my pay could go over threshold some months but my annual income was below threshold so you can claim it back, a bit like a business expense.

In a similar way you can claim tax back on essentials for work eg if you employer provides a uniform but you have to clean it then you can claim for that, lots of NS staff can claim 'stockings and shoes' allowance.
www.gov.uk/guidance/job-expenses-for-uniforms-work-clothing-and-tools

Useranon1 · 04/03/2022 10:31

You're all going to hate me for this and I know some of you will desperately have needed the money, but this is exactly why the government are currently making it harder for young people to go to university. The number of people not repaying their loans is skewing the burden on Treasury and tax payers, and what led to the new announcements a fortnight ago to restructure repayments in a way that hurts poorer students; introduce new eligibility criteria to make it harder for young people to go in the first place; and defund a number of subjects so that departments are closing up and down the country. And not evenly - they are closing in the newer universities which serve regions with less HE provision, and offer services to students who can't afford to move away from home.

I know it's popular to say "well I won't ever pay it all back so why shouldn't I" but worth remembering that you're repaying for something you benefited from, and by refusing to do so you are taking those opportunities away from your children's generation.

AwkwardPaws27 · 04/03/2022 10:40

@Useranon1

You're all going to hate me for this and I know some of you will desperately have needed the money, but this is exactly why the government are currently making it harder for young people to go to university. The number of people not repaying their loans is skewing the burden on Treasury and tax payers, and what led to the new announcements a fortnight ago to restructure repayments in a way that hurts poorer students; introduce new eligibility criteria to make it harder for young people to go in the first place; and defund a number of subjects so that departments are closing up and down the country. And not evenly - they are closing in the newer universities which serve regions with less HE provision, and offer services to students who can't afford to move away from home.

I know it's popular to say "well I won't ever pay it all back so why shouldn't I" but worth remembering that you're repaying for something you benefited from, and by refusing to do so you are taking those opportunities away from your children's generation.

I have absolutely no issue paying back the agreed % that I earn over the annual threshold - but if they take more than I should actually pay in a year, why shouldn't I claim it back?

If you were charged too much tax, for example, would you accept a refund from HMRC?

AllOfUsAreDead · 04/03/2022 10:50

@Useranon1

You're all going to hate me for this and I know some of you will desperately have needed the money, but this is exactly why the government are currently making it harder for young people to go to university. The number of people not repaying their loans is skewing the burden on Treasury and tax payers, and what led to the new announcements a fortnight ago to restructure repayments in a way that hurts poorer students; introduce new eligibility criteria to make it harder for young people to go in the first place; and defund a number of subjects so that departments are closing up and down the country. And not evenly - they are closing in the newer universities which serve regions with less HE provision, and offer services to students who can't afford to move away from home.

I know it's popular to say "well I won't ever pay it all back so why shouldn't I" but worth remembering that you're repaying for something you benefited from, and by refusing to do so you are taking those opportunities away from your children's generation.

Going to point out too that the government leaders use loopholes all the time to get what they want, screw us over and make more money, and they do it with much larger amounts. They don't give a damn about us. And the world is just turning into more of a look out for number one than a look out for society. It's going to continue getting worse anyway for kids born today, this is a small drop in the ocean in how it will effect them.
PearPickingPorky · 04/03/2022 10:57

I know it's popular to say "well I won't ever pay it all back so why shouldn't I" but worth remembering that you're repaying for something you benefited from, and by refusing to do so you are taking those opportunities away from your children's generation.

If they haven't earned over the threshold, and aren't earning enough to ever pay it all back, then they haven't actually benefited from going to university, have they.

Out of interest, would you apply the same thinking for people who have paid too much in tax in a year, and are struggling?

SSDDagain · 04/03/2022 11:10

Thanks OP!
I gave it a go on the off chance. They found one year where I was due a refund due to maternity.
£180 coming back to me!

As I've just had to go part-time at work due to being a carer and the storms damaged our fences, it's come in really handy!

Useranon1 · 04/03/2022 11:16

If they haven't earned over the threshold, and aren't earning enough to ever pay it all back, then they haven't actually benefited from going to university, have they.

You can't possibly know that as you don't know what would have happened if they hadn't gone.

It's not the same as tax as it's a loan. Its more akin to borrowing money from someone and agreeing to pay them back, then changing your mind as you're not doing as well as expected. Technically you might be in the right, but by doing so someone else is suffering.

Like I said, fine if you need to money but if you don' then I think its morally wrong to get the refund.

AwkwardPaws27 · 04/03/2022 11:36

@Useranon1

If they haven't earned over the threshold, and aren't earning enough to ever pay it all back, then they haven't actually benefited from going to university, have they.

You can't possibly know that as you don't know what would have happened if they hadn't gone.

It's not the same as tax as it's a loan. Its more akin to borrowing money from someone and agreeing to pay them back, then changing your mind as you're not doing as well as expected. Technically you might be in the right, but by doing so someone else is suffering.

Like I said, fine if you need to money but if you don' then I think its morally wrong to get the refund.

I don't think you understand what people are claiming back.

No one is claiming back payments that were correctly taken. You cannot do this.

They are claiming back accidental overpayments - where too much was taken by SLC.

AwkwardPaws27 · 04/03/2022 11:53

@Useranon1 as an example:

I earned under the threshold when working for the NHS. We had a small payrise agreed but it took months and months to come through. As such, I received a backdated payment for around 6 months of the incremental increase.

My annual salary with the increase was still below the repayment threshold - but SLC treated that one month's payment as if that was my salary every month (I wish!), & as such deducted loan repayments from it.

Another example:
I'm going on maternity leave later this year. I'll earn my normal salary for a few months, then SMP, then a period of unpaid leave. My total payment for the year will be well below the threshold but SLC will take payments during the months I get full pay, regardless of the fact I won't be earning over the threshold.

HMRC usually adjust your tax code or send you a refund but SLC don't automatically do this - unless you give them a call.