Check Your Repayments
Martin Lewis, the renowned Money Saving Expert, has issued a warning to millions of Brits who may have paid the wrong amount in their student loan repayments. He is urging anyone with an outstanding student loan to check if they have been overpaying.
Over a Million People Overpaid
In the 2022/2023 financial year alone, it was found that a million people paid too much on their student loans. The amount you should pay back depends on when and where you went to university.
Four Ways to Pay the Wrong Amount
Lewis has taken to social media and his ITV show to explain the four ways in which people with student loans could be paying the wrong amount. He has criticized the communication surrounding loan repayments and referred to them as a "graduate tax" that has become a "political football".
Thresholds and Payment Plans
The thresholds for loan repayments are dependent on when and where you went to university. If your employer does not have your correct details, you may be placed into the wrong payment plan, resulting in overpayment. Last year, 833,000 people did not earn above the correct threshold and paid too much back.
Variable Income and Repayment Errors
Repayment errors can occur if your income is variable throughout the year but higher in some months than the annualized amount. This can lead to paying more on your loan, even if you earn less than the threshold over the year.
Pay by Direct Debit
One way to ensure you do not overpay is to pay your loan in your last two years by direct debit. This way, you can keep track of your payments and avoid paying more than necessary.
Claiming an Overpayment
If you have overpaid on your student loan, it is important to reclaim the money. There is no time limit to reclaiming an overpayment. You will need to collect old payslips and contact the Student Loans Company (SLC) to initiate the process.
For more information, you can contact the SLC at 0300 100 0611 (for Wales it's 0300 100 0370 and +44 141 243 3660 from overseas). Additionally, there is a new SLC Refund Request form available online at gov.uk to aid with the high demand for reclaiming overpayments.
Martin Lewis advises those who are unlikely to pay off their loans to take steps to reclaim their overpayments.
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