New data shows that 100,000 people could claim a refund on student loan repayments made in 2024/25. Here’s how to know if you’re one of them, and if it’s worth doing.
The Student Loan Corporation (SLC) has released new statistics revealing that 100,000 people are eligible for a refund on student loans repaid in the 2024/25 financial year, with many still yet to claim a refund.
This is the second year in a row that SLC has published this data, and once again, a large number of former students are learning that they can make some money back.
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But how much can you expect to get back, and is it worth claiming a refund if you could have to pay it back later? Allow us to explain.
Why do people deserve a student loan refund?
There are four reasons why you may be eligible for student loan recovery:
- You made payments, but you ended up getting less than the annual payment limit
- You were placed on the wrong student loan repayment plan
- You made the payment before the repayment period began
- You have continued to make payments even after your entire balance has been cleared.
As long as you do not make the payment voluntarily, a refund can be claimed in all cases.
How many people are eligible for a student loan refund?
Credit: Obermensch Matt – shutterstock
The most common reason a graduate may be eligible for a refund is because they paid off their student loan despite ultimately earning less than the annual limit.
643,824 people who took out a Plan 2 loan did so in 2024/25, with the total recoverable amount reaching £85,964,932. On average, this amounts to Just over £133 each – But we’ve heard stories of people asking for much more than that!
The numbers also show that 28,834 people who took out Plan 2 loans made early payments, meaning the money was taken out before the repayment period began (usually the first of April after the student graduated).
Meanwhile, 15,941 people who received a Plan 2 loan made repayments under the wrong plan, and 57,764 people had their repayments paid even though they had already settled their balance in full.
How to claim your student loan back
How you claim your student loan back depends on why you think you might qualify:
- You repaid while under the annual limit – SLC will now contact you in the next financial year and invite you to request a refund through your online account. Anyone can request a refund this way, even if the SLC has not contacted you.
- You started paying off your loan early – You will need to contact SLC directly, either by phone or via social media.
- You have cleared your balance but you continue to pay – You should be refunded automatically.
- You were placed on the wrong payment plan – You will need to contact SLC directly, either by phone or via social media.
More details on all the methods, as well as how to check if you qualify, can be found in our guide to student loan recovery.
Is it worth claiming a student loan refund?
Our financial expert, Tom Allingham, has broken down how the most common overpayments occur, and whether it’s worth asking for a refund:
The cost of living remains a struggle for many, and with Christmas just around the corner, this might be the perfect time to check if you’re eligible for a student loan refund.
The most common reason a graduate may be eligible for student loan recovery is if they repay it despite ultimately earning less than the annual limit. This has most affected those with a Plan 2 loan (English graduates who started university between 2012 and 2023, and Welsh graduates who started at any time since 2012).
In 2024/25, the repayment limit for this plan is £27,295. However, student loan repayments are made when you get paid – so depending on how often, your repayments are calculated at the equivalent of a minimum weekly, fortnightly, or monthly instead.
If a graduate worked extra shifts, took a bonus or changed jobs part way through the year, they may have earned more than the weekly or monthly limit. But if their annual earnings by the end of the financial year are less than £27,295, they will be eligible for a refund.
As for whether it’s actually worth claiming the money, the main thing to remember is that student loans aren’t like other types of debt. Many graduates with a Plan 2 loan will not fully clear the balance before it is eventually canceled, and the monthly payments are only affected by your earnings, not your outstanding debts. In other words, paying voluntary premiums could just be a waste of money.
Even if you have another type of student loan, or think you’ll pay the full amount back, it may be worth claiming a refund. An extra few hundred pounds could be a much-needed payment right now, even if it means spending an extra couple of months paying off the loan. But everyone will have their own priorities, and you may prefer to overpay now and clear your balance early.
While you’re at it, why not check if you’re due a tax refund too?
