A savvy saver has revealed how a brief 11-minute call to the Student Loans Company, inspired by money guru Martin Lewis, led to a whopping £900 windfall.
Abby Kutiwa from London took the MoneySavingExpert.com founder’s advice after he highlighted that countless individuals are owed refunds due to overpayments.
The financial whizz had previously flagged up that many former students might have been erroneously placed on incorrect repayment plans, leading to excess deductions. Other common reasons for overpayment include starting repayments prematurely or continuing to pay even after the loan balance is cleared.
Speaking to Yahoo News, Abby recounted her experience: “The call was quick and easy, I spent a total of 11 minutes on the phone, my phone number was linked to my account, so I got through pretty quickly – but have your customer reference number ready.”
Repayment thresholds vary depending on which plan you’re on, with Plan 1 requiring 9% of income above £24,990 (or 6% for postgraduate courses), Plan 2 kicking in at £27,295, Plan 4 at £31,395, and Plan 5 at £25,000. The specific plan applicable to a student hinges on the time they commenced their university education.
If you commenced your course before September 1, 2012 (England and Wales) or after September 1, 1998 (Northern Ireland), you’re on a Plan 1 repayment scheme. Alternatively, if your course started between September 1, 2012 and July 31, 2023 (England) or after September 1, 2012 (Wales), you’re on Plan 2, reports the Mirror.
For Plan 4, this applies to those who began their course after September 1, 1998 (Scotland). Plan 5 is for individuals who started their course after August 1, 2023 (England).
How to claim Student Loan refund
If you suspect you’ve overpaid, you should get in touch with the Student Loans Company to investigate your account. The contact numbers are:
- England, Scotland and Northern Ireland: 0300 100 0611
- Wales: 0300 100 0370
- Overseas: +44 141 243 3660
It’s beneficial to have as much relevant information available as possible, such as the email address you used when applying for your loan. You should also inform your employer if you’re on the incorrect payment plan to prevent further overpayments.
If it emerges that you’ve been underpaying your student loan, you won’t be required to repay anything – but you will be moved onto the correct plan for future payments.
