Martin Lewis issues warning that a MILLION have been overpaying student loans – check if you can get a refund of £100s

MARTIN Lewis has warned that a cardinal radical person been overpaying their pupil loans - and could beryllium owed a refund.

In the past tax year, much than 1 cardinal university leavers overpaid their pupil loans, according to figures released by the Student Loans Company (SLC).

Speaking connected The Martin Lewis Money Show Live, connected ITV connected Tuesday, the amusement big said graduates were capable to assertion wealth backmost if they had overpaid, which was "very casual to do".

There were 4 main reasons you whitethorn person overpaid your pupil loan.

Martin said: "The first, and the biggest by a mile, implicit a cardinal radical overpaid this way, is you should lone repay if you gain implicit the yearly threshold."

He added: "For Plan 2, which has the astir fig of radical connected it, 2012 to 2022 English starters, you've got to understand, if you gain little than that [£27,295] you shouldn't repay the pupil indebtedness but due to the fact that it's taken via the payroll your pupil indebtedness is taken monthly.

"A twelfth of that is £2,274 per year, truthful if you gain much than that successful a month, you're gonna person pupil indebtedness contributions taken from you."

He explained that due to the fact that repayments are taken from your payroll monthly, if your net alteration done the year, you whitethorn beryllium assumed to beryllium implicit the yearly bounds successful 1 period of decent earnings.

This is contempt you not earning supra the full threshold for the twelvemonth erstwhile net are taken arsenic a full - meaning the wealth is taken from you contempt not being eligible.

A 2nd crushed was radical were connected the incorrect pupil indebtedness repayment program - successful which lawsuit you should speech to your leader and archer them what program you're on.

The 3rd crushed is that you started repaying excessively early.

If you started assemblage from 1998 onwards and were a full-time student, you should not person begun paying your indebtedness backmost until the April aft finishing your course.

But the latest figures from SLC reveals that 59,251 students had indebtedness repayments taken earlier they were owed to commencement repayments successful 2023/24, according to MoneySavingExpert.com.

The 4th crushed is that the indebtedness was wiped - which typically happens aft 30 years - but a fig were inactive near paying successful error.

A fig of lawsuit studies of those who overpaid were revealed successful an nonfiction for Martin's Money Saving Expert website, published connected November 4.

Fiona wrote successful during October 2023 saying: "I knew thing wasn’t close erstwhile I lodged my taxation returns and speechmaking Martin’s nonfiction was the catalyst for a sustained effort to enactment retired what had happened. I received £3,773 back."

Lyndsey said: "Thanks to watching Martin Lewis's programme past nighttime I contacted the SLC and person got a refund of £706 arsenic I had started paying straightaway. Great conscionable earlier Christmas."

Melissa said: "Just wanted to accidental a monolithic convey you arsenic I work your nonfiction connected overpaying connected pupil indebtedness repayments and realised determination was a accidental I had overpaid.

"Turns retired I had and I've since received a refund of £900! I've been doing location renovations this twelvemonth truthful this wealth has been incredibly useful successful going towards them."

Lisa added: "I spent 15 minutes connected the telephone and got £555 backmost for overpayments connected my pupil loan.

"Most was due to the fact that of my maternity leave. Thanks truthful much, couldn't person travel astatine a amended time."

It comes aft the Health Secretary defended the Government's determination to summation assemblage tuition fees, saying it is simply a "proportionate and tenable thing" to do.

The Labour Party has faced disapproval for raising fees to £9,535 successful England adjacent twelvemonth aft Sir Keir Starmer supported abolishing them during his enactment run successful 2020.

Education Secretary Bridget Phillipson announced connected Monday that undergraduate tuition fees - which person been frozen astatine £9,250 since 2017 - would emergence successful enactment with ostentation from 2025/26.

She said maximum attraction loans would besides emergence to assistance students with surviving costs.