Martin Lewis has issued a warning to over one million people across Great Britain who have an outstanding student loan. They may have overpaid during the 2023/24 financial year and could be entitled to refunds amounting to hundreds of pounds.
The financial expert made this announcement on this week’s Martin Lewis Money Show Live and also in the MoneySavingExpert (MSE.com) newsletter.
The consumer champion explained to ITV viewers that your location and the type of course you completed determine the annual earnings threshold – the amount you can earn before you need to start repaying the student loan.
A recent Freedom of Information request by MSE.com revealed that 1,064,211 people overpaid their student loans during the last financial year. This figure is in addition to the millions already identified as having overpaid.
According to Mr Lewis, the average payout is £280, making it worth investigating, reports the Daily Record.
Mr Lewis then outlined the four main reasons for these overpayments. He stated: “The first and biggest by a mile is that you should only repay if you earn over the annual threshold.”
This accounts for over one million overpayments.
The second reason is being on the wrong student loan payment plan by default, affecting 20,500 people.
Additionally, MSE.com found nearly 60,000 individuals in the 2023/24 financial year started repaying their loans prematurely, which is one of the reasons you could be owed a refund.
Another issue that affected almost 38,000 people was having money deducted even after the loan had been fully repaid.
For those looking to reclaim, MSE.com provides an extensive guide detailing each of the four reasons and includes examples to help claimants determine their eligibility. The full guide can be accessed here.
Mr Lewis highlighted that there’s no deadline for claims and it’s possible to reclaim for as many years as needed. While having old payslips, your payroll number, and a PAYE reference number can be helpful, the absence of these documents shouldn’t deter you.
Thanks to a new online system, many claims can be processed digitally, with others just a phone call away.
Rebecca, a nurse, reached out to share her success story, having reclaimed £444 after overpaying her student loan due to extra hours worked during the Covid pandemic.
Mr Lewis commented: “Lovely to hear and dead easy to do as well.”
