Millions of graduates across the UK could be entitled to refunds after making unnecessary student loan repayments, according to financial expert Martin Lewis. Some borrowers have already recovered hundreds or even thousands of pounds after discovering errors in their repayment records.
The warning follows updated figures from the Student Loans Company (SLC), showing that more than 1.1 million student loan overpayments occurred during the 2025/26 tax year. Lewis has urged former students to check their repayment histories, with some errors potentially dating back several years.
More Than a Million Student Loan Overpayments Recorded in One Year
According to MoneySavingExpert, student loan overpayments averaged £240 during the latest tax year. Many affected borrowers may not realise they have paid more than required because repayments are automatically deducted from their wages.
The most common problem involves graduates whose annual earnings fall below the repayment threshold but who still have deductions taken during individual months.
This can happen when someone receives a bonus, works additional shifts, changes employment or takes maternity or paternity leave. Although their monthly income temporarily exceeds the repayment threshold, their total annual earnings may remain below it.
Figures published by the SLC show that 1,051,739 overpayments occurred for this reason in 2025/26, compared with 1,074,521 in 2024/25.
Other errors also contributed to the total. A further 14,522 overpayments resulted from borrowers being placed on incorrect repayment plans, while 35,565 involved graduates who started repaying before their official repayment date.
Another 56,376 overpayments occurred after borrowers had already cleared their outstanding loan balances.
Some graduates have recovered substantial sums. One borrower, Fiona, told MoneySavingExpert she received £3,773 after investigating discrepancies in her repayments.
Another graduate, Lisa, recovered £555 following deductions largely associated with her maternity leave. She said the process took approximately 15 minutes over the telephone.
How Graduates Can Check Their Repayments and Reclaim Money
Graduates can investigate possible overpayments by reviewing their repayment plan, annual earnings and previous salary deductions.
According to the Mirror, Lewis has reminded borrowers that there is no time limit for reclaiming qualifying student loan overpayments, meaning errors dating back a decade may still be eligible for refunds.
For the 2026/27 academic year, the annual repayment threshold is £29,385 for Plan 2 borrowers, covering those who began undergraduate courses in England between 2012 and 2022 and in Wales from 2012 onwards.
Those who made repayments despite earning below their applicable annual threshold can request refunds through their online student loan repayment accounts.
Borrowers who were placed on the wrong repayment plan or began repayments too early generally need to contact the SLC directly.
Refunds involving deductions after a loan has been fully repaid are normally processed automatically, provided the SLC can verify the borrower’s bank details.
Lewis has also explained why reclaiming can make financial sense, particularly for Plan 2 borrowers.
Government figures cited by MoneySavingExpert indicate that around two-thirds of these borrowers will not repay their loans entirely before the outstanding balance is written off after 30 years.
For graduates in that position, reclaiming an overpayment may provide money that would otherwise make little difference to their eventual total repayments. Borrowers who expect to clear their loans in full face different considerations, since recovering previous overpayments increases their outstanding balances.
