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Millions of people in the UK who have repaid student loans could be entitled to money back under four official refund categories, according to the Student Loans Company (SLC).
The organisation confirmed on 29 October 2026 that its Digital Refund Service had received more than 1.6 million refund requests since launching in May 2024.
The latest announcement highlights four circumstances in which borrowers may have paid more than required and could request a refund. These include earning below the annual repayment threshold, paying off a loan but continuing to have deductions taken, starting repayments too early and being placed on the wrong repayment plan by an employer.
However, the 1.6 million figure represents refund requests submitted through the digital service, not the number of people who have necessarily received money.
£97.6 Million Refunded to More Than 416,000 Borrowers
The latest official figures show that £97.6 million was refunded to 416,400 customers during the 2025/26 tax year under the below-threshold category alone.
More recent figures also show that £50 million was refunded to 222,800 customers under this category between April and September 2026.
Across all four refund categories, the SLC's statistical release recorded £125.2 million paid to 514,700 customers in 2025/26. A further £65.3 million was refunded to 277,500 customers in the 2026/27 tax year up to the latest reporting period.
The figures may include customers who received more than one refund, so they should not be interpreted as unique individual totals.
The Four Reasons You Could Be Eligible for a Student Loan Refund
1. You Earned Below the Annual Repayment Threshold
This is the main category covered by the SLC's digital refund service.
Student loan repayments are usually deducted from wages when earnings exceed the relevant weekly or monthly threshold. However, someone whose income fluctuates during the year may have repayments taken in months when they earn more than the monthly limit, even if their total annual income remains below the yearly threshold.
In this situation, the borrower may be eligible to request a refund after the tax year ends and HM Revenue and Customs (HMRC) has provided the necessary annual earnings information to the SLC.
For the 2025/26 tax year, the annual thresholds were:
Plan 1: £26,065
Plan 2: £28,470
Plan 3 (postgraduate loans): £21,000
Plan 4: £32,745
Plan 5: £25,000
People with more than one type of loan may need to meet additional rules when checking their eligibility.
2. You Continued Paying After Clearing Your Loan
Some borrowers may continue to have student loan deductions taken from their salary after their outstanding balance has been fully repaid.
This can happen because employers need time to receive and process the instruction to stop deductions through the payroll system.
The SLC says that if it holds up-to-date bank details, eligible overpayments should normally be refunded automatically. Borrowers who believe they have paid too much but have not received a refund can contact the organisation.
In the 2025/26 tax year, £26.8 million was refunded to 76,100 customers under this overpayment category.
3. Your Employer Started Taking Repayments Too Early
Borrowers generally become responsible for repaying their student loans from the statutory repayment date. For many graduates, this is the April after they finish or leave their course.
However, an employer may sometimes begin deductions before the borrower is legally required to repay.
This can happen because of an administrative error, incorrect information on a new starter checklist or a misunderstanding about the employee's repayment status.
Anyone who believes deductions began too early should check their payslips and online student loan account. The official guidance advises customers to contact HMRC about deductions taken before their statutory repayment date.
4. Your Employer Used the Wrong Repayment Plan
Student loans have different repayment plans, each with its own income threshold.
If an employer places someone on the wrong plan, the employee could have more money deducted from their wages than they should have paid.
Borrowers can check their correct plan through their SLC online account and download an Active Plan Type letter to share with their employer.
If incorrect deductions have already been made, they may be entitled to request a refund once the repayment information has been corrected.
How to Check and Request a Student Loan Refund
Borrowers can check their repayment information and refund eligibility through the official GOV.UK student loan repayment service.
For below-threshold refunds relating to a previous tax year, eligible customers can sign in to their online account and submit a request once the necessary earnings information has been confirmed.
For the other refund categories, customers may need to contact the Student Loans Company directly.
The organisation also advises borrowers to keep their contact details and bank information up to date to avoid missing important notifications or experiencing delays.
Official guidance is available here: https://www.gov.uk/repaying-your-student-loan/getting-a-refund
Before requesting money back, borrowers should consider the effect on their remaining student loan balance.
The SLC has warned that refunds for below-threshold, early repayment and incorrect-plan deductions can increase the outstanding loan balance and the interest that may accrue.
This means receiving money back is not necessarily the best financial decision for every borrower. Individual circumstances, including how much remains outstanding and the likely future repayment period, should be considered.
The SLC says its digital service is intended to make the refund process easier for customers, while its latest figures highlight the scale of repayments being returned under the existing rules.
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