Student loan refund being refused despite paying 20% of ‘over the threshold earnings’ - plan 2
Resume IA
Un étudiant a payé plus que ce qu'il devait pour son prêt étudiant en raison d'une erreur de son employeur et essaie de récupérer l'argent en trop, mais la société de prêts étudiants refuse de le rembourser.
Conseil cle
Vérifier les déductions de prêt étudiant et contacter la société de prêts étudiants en cas d'erreur
I have a plan 2 student loan and the threshold last year was £27,275. I earned £28,903.86, meaning I was over this threshold by £1608.86 - 9% of this would have amounted to £144.79 in repayments. However due to an employer error where they forgot to pay me via payroll when I returned in April from maternity leave (instead putting the money in my bank transfer and recording it into my May payslip), it appeared like I had earned over £4600 in a single month. From this, they took a £207 student loans deduction (presumably basing it as if this was my salary every month for a year). They also continued to take my student loans deduction every other month too - most months £11 a month, then £15 a month towards the end because my salary rose slightly. In total I paid £329 in student loans last year when based on 9% of my earnings over the threshold I should have only paid £144.79. The amount actually taken amounts to 20.46% of my earnings over the threshold. I contacted the student loans company about this immidiately and they said call back in April 2025 as it had to be the end of the tax year. So since April 1st I’ve been trying to be refunded this money. Yesterday I had it in writing that they are refusing to refund this money to me, because it was my employers error and they apparently don’t have to reimburse me anything if I’ve earned over the threshold. This seems ridiculous to me, because they could surely then charge whatever they feel like and never refund anyone who’s earned over £27,725? I signed up to pay 9% of my earnings over the threshold to them, yet this year I’ve paid them 20.46% of my earnings over the £27,275 and they are refusing to refund me the difference. Is there anything I can do here? Is it correct they don’t have to repay me? I’ve asked many advisors and they all refuse 🙃 I’m a young mum with a £72k student loan debt which just rises due to inflation every year, which I’m unlikely to ever pay off, and the £184 I have overpaid is a lot o
“Hey, a similar experience here. In short, the way it was explained to me, is that if you earn under the threshold for the tax year, anything you do pay (for example, a bonus month) is only eligible for a refund provided that if the tax year ends you are still under the threshold. If you are over the threshold altogether for your salary, additional overpayments (whether as a result of backpay, bonus, pay rise, pay error whatever) cannot be claimed back. Only if at the end of the tax year you somehow earned underneath the threshold (maybe becoming unemployed mid year would take you back under the threshold?) I've had both situations and in both cases a refund - and a situation where a refund wasn't eligible was a backdated payrise when already above the threshold - they took a huge chunk in that payslip but on balance it would have been a similar amount when spread over the 4 months it should have been paid. Hope that helps?”