Over 100,000 students have started paying back their student loan before legally necessary. Money Saving Expert (MSE) launched an investigation where they revealed that over the past three years 103,290 graduates have seen undue deductions on their pay slips.
This has apparently occurred as a result of repeated admin errors on behalf of employers or borrowers, not the Student Loans Company. The problem has affected graduates who have started paying back their loan before the April after graduating. In fact, regardless of your income, you don’t need to start paying back your loan before this date.
The issue effects those who have started Higher Education in or after 1998 and impacts more people than you might think. Since 2014, Students Loans Company have paid back rebates worth £729,000 to nearly 2,200 people- an average of £333 each.
Martin Lewis, founder of Money Saving Expert said:
“In practice student loan repayments act far more like a tax than a debt – and just like a tax, if you’ve overpaid it’s worth getting the cash back.
“With interest rates for those who started university in or after 2012 as high as 6.1 per cent, some may assume starting repaying early is a boon.
“Yet the stats show the hugely majority of these university leavers are unlikely to clear their loan in full in the 30 years before it’s wiped.
“Therefore for them, extending the repayment time by starting early will simply mean paying more unnecessarily. So get the money back.”
So, how can you get your money back?
Well, it’s dead easy. Just follow these simple steps:
- Check your payslip to see if you’ve had any deductions made for student loan repayments.
- Ring the Student Loans Company on 0300 100 0611 (or +44 141 243 3660 if you’re calling from overseas).
- Tell them you’ve started repaying the loan before you’re meant to and they’ll sort it out.
It really is that simple. Here’s to an extra £333 in the bank!