Martin Lewis has warned that nearly one million people across Great Britain with an outstanding student loan may have paid too much money last year and could be due a refund. The consumer champion shared a video on social media explaining how a Freedom of Information request put in by MoneySavingExpert.com to the Student Loans Company, indicates that “there are a lot of people out there who may be due money”.
In the short video, Martin used the current Plan 2 threshold of £27,295 as the example of how to work out if you have overpaid, however, for people in Scotland, £25,000 is the figure to use. Essentially if you earned less than this amount during the 2021/22 tax year, which is from April 6, 2021 to April 5, 2022, you could be due money back, especially if you didn’t work a full year on the higher salary.
Paying too much despite earnings lower than the threshold Martin said: “The big one - and the vast majority - is 833,000 people repaid, even though they don't earn enough to repay. Now, you'll know that you only repay your student loan if you earn over a set threshold. For most people, that threshold is just over £27,000, although depending on when you started university, in which UK nation, it might be over £22,000.
"But now let's imagine you only work six months of the year, or most months you earn below the £2,274, but you just got some bonus or you worked overtime. So a few months you weren't above it. That may mean your student loan repayments were taken, even though in the tax year in total - April to April - you earned less than £27,295. If that happened, you repaid your student loan when you needn't have done so. So, you are eligible to take that money back.
To fix this, Martin said you need to check with your employer, which plan you are on and when it took your repayments. If you’re looking at previous employers just check old payslips for deductions, or the annual P60 issued by every employer.
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