Student Loan refunds: 640,000+ can make claims totalling over £150m
New data shows that 100,000s of people can claim a refund on Student Loan repayments made in 2024/25. Here's how to find out if you're one of them, and if it's worth doing.
The Student Loans Company (SLC) has released new stats revealing that 100,000s of people are entitled to a refund on Student Loan repayments made in the 2024/25 financial year, with many still yet to claim the money back.
This is the second year in a row that SLC has published this data, and once again, a huge number of former students are learning that they can get some money back.
m
But how much can you expect to get, and is it worth claiming a refund if you might have to repay it again later on? Allow us to explain.
Why are people owed a Student Loan refund?
There are four reasons why you may be eligible for a Student Loan refund:
- You made a repayment, but eventually earned less than the annual repayment threshold
- You were placed on the wrong Student Loan repayment plan
- You made a repayment before the repayment period began
- You continued repaying even after clearing your balance in full.
As long as you didn't voluntarily make the repayment, a refund can be claimed in all instances.
How many people are owed a Student Loan refund?
Credit: Ubermensch Matt – Shutterstock
By far the most common reason a graduate may be eligible for a refund is having made a Student Loan repayment despite eventually earning less than the annual threshold.
643,824 people with a Plan 2 loan did this in 2024/25, with the combined refundable amount totalling £85,964,932. On average, this amounts to just over £133 each – but we've heard stories of people claiming much, much more!
The figures also show that 28,834 people with Plan 2 loans made early payments, meaning money was taken before the repayment term started (usually the first April after a student graduates).
Meanwhile, 15,941 people with a Plan 2 loan made a repayment under the wrong plan, and 57,764 had repayments taken despite already having cleared their balance in full.
How to claim your Student Loan refund
The method for claiming your Student Loan refund depends on why you think you might be eligible:
- You repaid while under the annual threshold – SLC will now contact you in the following financial year, inviting you to request a refund through your online account. Anyone can request a refund this way, even if SLC hasn't contacted you.
- You started repaying your loan early – You'll need to contact SLC directly, either over the phone or via social media.
- You cleared your balance but kept repaying – You should be issued a refund automatically.
- You were placed on the wrong repayment plan – You'll need to contact SLC directly, either over the phone or via social media.
More details on all methods, as well as how to check if you might be eligible, can be found in our guide to Student Loan refunds.
Is it worth claiming a Student Loan refund?
Our money expert, Tom Allingham, has explained how the most common overpayments have occurred, and if it's worth requesting a refund:
The cost of living remains a struggle for many, and with Christmas just around the corner, this could be the perfect time to check if you're owed a Student Loan refund.
By far the most common reason that a graduate might be eligible for a Student Loan refund is if they made a repayment despite eventually earning less than the annual threshold. This has most often affected those with a Plan 2 loan (English graduates who started uni between 2012–2023, and Welsh graduates who started any time since 2012).
In 2024/25, the repayment threshold on this plan was £27,295. However, Student Loan repayments are taken when you're paid – so depending on how often this is, your repayments are calculated against a weekly, fortnightly or monthly equivalent of the threshold instead.
If a graduate worked extra shifts, received a bonus or changed job part-way through the year, they may have earned more than the weekly or monthly threshold. But if their annual earnings by the end of the financial year were less than £27,295, they would be eligible for a refund.
As for whether it's worth actually claiming the money, the main thing to remember is that Student Loans aren't like other types of debt. Many graduates with a Plan 2 loan will never clear the balance in full before it's eventually cancelled, and monthly repayments are only affected by your earnings, not your outstanding debt. In other words, making voluntary repayments could just be throwing money away.
And even if you have another type of Student Loan, or think you'll repay in full, it might still be worth claiming a refund. An extra few hundred pounds could be a much-needed boost right now, even if it means taking a couple of extra months to repay the loan. But everyone will have their own priorities, and it may be that you'd rather overpay now and clear your balance earlier.
While you're at it, why not check if you're owed a tax refund too?
