What is the student loan refund process and how can I claim a student loan refund? Check if you’re eligible and find out how long student refunds take here.
Disclaimer: This content was true at the time of publishing on 29 April 2025. Check the GOV.UK website for latest updates.
Understanding student loan repayments can be confusing. When do you actually start paying? And more importantly, could you be due a student loan refund? Thousands of graduates are unaware that errors can lead to them overpaying, putting unnecessary pressure on their finances. Let’s break down the basics and show you how to claim a student loan refund.
When do you start paying back a student loan?
You’ll typically start to pay your student loan back at the start of the tax year after you complete your study or course. The amount you pay back on your student loan depends on the type of student loan plan you’re on, your income before tax, and where you lived before going to university.
Find out which student loan plan you’re on and how much you have to pay back on GOV.UK.
Some people never pay back their student loan in full, as it may be written off in the future, depending on when you started university and how much you owe. You can use the Student Loan Calculator to see if you’ll be likely to pay back your student loan in full based on your current earnings.
What are the reasons I could be due a student loan refund?
It’s easy to assume that your student loan payments are correct, but errors can happen. You might be paying too much, or even paying when you shouldn’t be. Understanding the common reasons for overpayments is the first step to making a student loan refund, and at CAP, we understand the importance that every penny can make to your bank balance.
Let’s guide you through some of the common reasons for why you might be eligible for a student loan refund:
1. You made payments on the wrong student loan plan type
You might be due a student loan refund if you’re paying back the wrong amount. This could happen if your employer thinks that you’re on a different student loan plan than you are. There could have been a mistake with your employer assuming you were on a certain plan, or if you started a new job and filled out the HMRC starter checklist form wrong.
It’s important to remember that if you’ve been put on the wrong plan and have been underpaying your student loan repayments, you’ll be put on the correct plan, which could mean that you’ll have to make higher payments Don’t worry – you won’t have to make any historic payments if you’ve been underpaying.
2. You earned below the threshold in the previous tax year
You should only start paying back your student loan if you’re earning above a specific threshold. This means that if your income varies each month, one month you could earn over the threshold, but over the full year, your overall income was below the threshold.
This can happen if you took on extra shifts one month, changed salary bands throughout the year, earned a bonus, worked for part of the year, or went on maternity or paternity leave for some of the year too.
3. You started paying back your student loan earlier than you should have
Another reason for being eligible for a student loan refund is if you started paying your student loan back too early. For most people, this means that you started paying your loan back before the April after you finished your studies, for example, if you graduated in 2023, you shouldn’t have started paying back before April 2024. This can happen if your employer has made a mistake or if you’ve not filled in the HMRC new starter form correctly for a new job.
4. You made payments but have already paid off your student loan
Did you know that you could have been making unnecessary student loan payments, even if you’ve fully paid your student loan off? Due to how the Student Loans Company (SLC) receives payment data from HMRC, there can be delays, leading to unnecessary deductions from your wage.
If you’re currently paying off your student loan and want to avoid this, the Student Loans Company now offers the option to switch to Direct Debit for your last two years of repayments.
If you’ve been charged more and you’ve already paid your full loan back, HMRC should automatically refund any overpayments, but this can take time. If you think there’s a delay, you can claim a student loan refund manually below.
How to claim a student loan refund
If you’re wondering how the student loan refund process works, the Student Loans Company aims to contact everyone directly who may be due a refund. However, if you think you’re not paying the right amount or there might be a delay, you can also submit a student loan refund claim yourself online.
It’s handy to know: you won’t be able to claim a refund for the 2024/2025 tax year until HMRC has sent this information about your earnings to the Student Loans Company (which will be later on in 2025).
To request a refund from the Student Loans Company, sign in to your online account to check your balance and the repayment plan that you’re on, and click ‘request a refund.’
How long do student loan refunds take?
If you’re wondering how long a student loan refund takes, the Student Loans Company aims to process your refund within 28 days of you filling out the online form in your account.
Where can I get free debt advice?
If you’re worried about money, don’t wait to get help. At CAP, we offer free FCA-accredited debt advice, money coaching workshops, job clubs and life skills groups, too. Simply pop your postcode in the box below to see what’s available in your area.
