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Paid student loan in a year you earned under the threshold? You can ask for it back

The Student Loans Company refunded £97.6 million to 416,400 people who earned below the threshold in 2025 to 2026. Here is how to check if you are due money.

Published 30 October 2026Last checked 30 October 2026UK-wideFrom Student Loans Company

A graduation cap upturned on a wooden desk, with a few coins tumbling back out of it into an open hand-held purse.

Illustration generated with AI

What's happening

If student loan repayments came out of your pay in a year when your total income was under the repayment threshold, you can ask for that money back. The Student Loans Company (SLC) says it has had more than 1.6 million refund requests since 2024. In the 2025 to 2026 tax year it paid £97.6 million back to 416,400 people in this situation alone.

The question: When can you get a refund of student loan repayments, and how do you claim one?

This applies to you if…

  • Your total income for a tax year (6 April to 5 April) was below your plan's yearly threshold, but repayments were taken
  • You kept repaying after your loan was paid off
  • Repayments started before the April after you left your course
  • Your employer used the wrong repayment plan

Not for you if…

  • Extra repayments you chose to make. GOV.UK says you cannot get these back
  • The current tax year, until it has ended and SLC has checked your income with HMRC
  • People whose income for the whole year was above their threshold

What it's worth

What it's worth: Usually tens to a few hundred pounds a year

Depends on how much was deducted. SLC refunded £97.6 million to 416,400 people below the threshold in 2025 to 2026

Tax year 2025 to 2026

Average below-threshold refund

  1. £97.6 million refunded
  2. Divided by 416,400 people
  3. = about £234 each

About £234 on average

Illustrative calc from SLC's figures. Your refund could be much more or less.

How to do it

  1. 1

    Check your repayment plan

    Sign in to your student loan account. You can download an 'active plan type letter' that shows your plan.

    Takes about 5 minutes

  2. 2

    Add up your income for the tax year

    Use your P60 or payslips. Count everything before tax, including bonuses and overtime, from 6 April to 5 April.

    Takes about 10 minutes

  3. 3

    Compare it with the threshold for that year

    For 2025 to 2026 the yearly thresholds were £26,065 (Plan 1), £28,470 (Plan 2), £32,745 (Plan 4) and £21,000 (Postgraduate Loan).

    Takes about 5 minutes

  4. 4

    Ask for a below-threshold refund in your online account

    SLC emails people it thinks are due one, but you can ask even if you have not heard. There is no need to phone.

    Takes about 10 minutes

  5. 5

    For other reasons, contact SLC with your customer reference number

    Use this route for overpaying after your loan was cleared, repaying too early or being on the wrong plan.

Deadline

No deadline stated

GOV.UK says you can only ask about tax years that have ended. It does not give a cut-off for older years.

The catches

The refund goes back onto your loan

SLC says any refund is added back to your loan balance, because the money no longer counts as repaid. The refund itself is paid into your bank account.

You have to wait until the year ends

SLC cannot confirm your income with HMRC until after 5 April, so a refund for this tax year cannot come yet.

More than one plan

If you repay Plans 1, 2 and 4 together, you only get a below-threshold refund if your income was under the lowest of your thresholds.

Paid-off loans can over-collect

GOV.UK says it can take around 4 weeks for deductions to stop after your loan is cleared. Switching to Direct Debit in your last year helps avoid this.

Beware refund scams

Only ask for a refund through your GOV.UK student loan account. Do not use links in unexpected texts or emails offering to claim for you.

Illustrative example

Example: Ellie, on Plan 2, with a bonus month

Ellie earned £1,800 a month in 2025 to 2026, plus a £3,200 bonus in March. Her yearly income was £24,800, below the £28,470 Plan 2 threshold.

  1. In most months her pay was under the monthly threshold, so nothing was taken.
  2. In March her pay was £5,000. Repayments are worked out each payday, so 9% of the part above the monthly threshold (about £2,372) came off: about £236.
  3. After the tax year ended, she asked for a refund in her online account.

Ellie could get about £236 back.

Illustrative calc. The monthly threshold here is the yearly threshold divided by 12. Actual deductions depend on your payroll.

What this means for…

  • Employed (PAYE): Repayments come through payroll, so a bonus, overtime or a short job can trigger deductions you can claim back.
  • Under 25: People starting work part-way through a tax year often earn below the yearly threshold overall.
  • 25–54: Worth checking if you changed jobs, took time off or went part-time in 2025 to 2026.

Common misreadings

You might hear: If money came out of my pay, I must have owed it.

Actually: Repayments are taken each payday based on that pay. What counts is your income across the whole tax year, so a one-off bonus can trigger repayments you get back later.

You might hear: I need to phone the Student Loans Company.

Actually: For a below-threshold refund you can ask in your online account. SLC says there is no need to call.

You might hear: Overpayments after my loan is cleared are lost.

Actually: SLC will contact you or refund you automatically. If you have not heard, you can ask them.

Where the UK nations differ

England
Courses from 1 August 2023 are usually Plan 5. Courses from September 2012 to July 2023 are Plan 2. Earlier courses are Plan 1.
Wales
Courses from 1 September 2012 are Plan 2. Earlier courses are Plan 1.
Scotland
Loans from the Student Awards Agency Scotland are Plan 4, with a higher threshold.
Northern Ireland
Loans from Student Finance NI are Plan 1.

What you could do

  1. earned less than your threshold in 2025 to 2026 but had repayments taken

    Sign in to your student loan account and ask for a below-threshold refund.

  2. think you may have paid off your loan

    Check your balance online and think about switching to Direct Debit for the final payments.

  3. are not sure your employer is using the right plan

    Download your active plan type letter and give it to your employer.

Timeline

  1. 5 April 2026

    2025 to 2026 tax year ended

    Refunds for this year can now be requested.

  2. 5 April 2027

    2026 to 2027 tax year ends

    You can ask about this year once SLC has checked income with HMRC.

The detail

The rules

  • Plans 1, 2, 4 and 5 take 9% of income over the threshold. The Postgraduate Loan takes 6% over its threshold.
  • Current yearly thresholds on GOV.UK: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000, Postgraduate Loan £21,000.
  • If you have two jobs, repayments are only taken from a job that pays over the threshold. Income is not combined.
  • Self-employed people repay through Self Assessment, based on yearly income, so below-threshold refunds mostly affect employees.
  • Refunds after a loan is paid off appear in your bank account as 'SLC Receipts'.

References

  • GOV.UK, Getting a refund: The four reasons you can get a refund, and that extra repayments are not refunded
  • GOV.UK, What you pay: Thresholds and repayment rates
  • SLC news, 29 October 2026: 1.6 million requests, £97.6 million to 416,400 people in 2025 to 2026

Documents

Words explained

Repayment threshold
The income level above which student loan repayments are taken.
Below-threshold refund
Money back when repayments were taken but your income for the whole tax year was under the threshold.
Repayment plan
The type of loan you have (Plan 1, 2, 4, 5 or Postgraduate), which sets your threshold.
Customer reference number (CRN)
Your SLC account number, used when you contact them.

In short

Student loan repayments are taken each payday, but what counts is your income over the whole tax year. If yours was below your plan's threshold, you can ask for the money back in your online account. SLC paid £97.6 million back to 416,400 people for 2025 to 2026 alone.

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Sources

  1. SLC's Digital Refund Service hits 1.6million refund requests, Student Loans Company (2026-10-29)
  2. Repaying your student loan: getting a refund, GOV.UK (2026-10-22)
  3. Repaying your student loan: what you pay, GOV.UK (2026-10-22)
  4. Previous annual repayment thresholds, GOV.UK (2026-04-06)
  5. Which repayment plan you are on, GOV.UK (2026-10-22)
  6. You earned below the threshold, Student Loans Company

This is guidance, not regulated financial advice. Check figures against the linked official source before you act. Written with AI assistance and checked against primary sources. How Kitty works. For free, impartial help, try MoneyHelper or Citizens Advice.