Digital service boosts student loan refunds for UK graduates

The Student Loans Company has refunded tens of millions of pounds to graduates in just a few months since a new simplified online service was launched this year.

New figures from the SLC show that a total of 216,300 UK graduates were refunded a total of £61.1 million in the 2023-24 tax year.

And the data reveals that £78.9 million has already been refunded so far in the 2024-25 tax year.

The most common reason for a refund is when graduates make a repayment despite earning below the annual threshold. This common error was responsible for £26.5 million of the total in 2023-24 and 102,200 of the customers.

The SLC said it has made “significant improvements” to the below threshold refund process, including proactively contacting customers who are eligible for a below threshold refund in the 2023-24 tax year.

SLC has emailed 653,000 customers who are eligible for a below-threshold refund for the last tax year.

It also introduced a new, simpler, digital service to allow customers to request a below-threshold refund using their online account in May 2024.

Since May, £61.6 million has been successfully refunded to 248,000 customers, in the below-threshold refund scenario, as a result of the new refund service.

Steven Darling, customer experience director at SLC, said: “With a below threshold refund being the most common reason why a customer might be eligible for a refund, we’ve made it quick and easy to request a refund through the online account.

“I would encourage customers to keep their contact and bank details up to date in their online account to ensure they don’t miss any key communication regarding refunds.”

The other reasons for repayment include being placed on the wrong repayment plan, making a repayment before the correct period begins, or continuing to repay after their balance has been cleared.

With the cost-of-living crisis still ongoing, Tom Allingham, from the website Save the Student, said there has arguably “never been a better time” for graduates to check if they are owed money.

“Regardless of how you might have overpaid your student loan, if you believe you’ve done so, it’s usually worth claiming a refund,” he said. “Many are still feeling the squeeze of the cost of living crisis, and reclaiming a few hundred pounds could be a welcome boost.”

patrick.jack@timeshighereducation.com