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<p>The Student Loans Company (SLC) has a Service Level Agreement of 28 days to make a refund to people who have made an over repayment on their student loan. Based on telephone requests from January to March 2024, the SLC averaged 8 days from the point the request was received to the point the refund was paid to the borrower’s bank account.</p><p> </p><p>Student loans repayments for borrowers resident in the UK are made via HMRC through the UK tax system. Employers deduct repayments each pay period for employees with a student loan when their earnings are above the relevant repayment threshold for that pay period.</p><p> </p><p>Over repayments can occur for a number of reasons, for example the time lag between an employer making a PAYE deduction and HMRC receiving and sending that payment to SLC, which can then confirm that a borrower has paid off their student loan balance. HMRC provides the SLC with student loan repayment information as reported by employers on a weekly basis. For this type of over-repayment, the SLC can automatically make a refund of £5,000 where they are able to verify a borrower’s bank account details.</p><p> </p><p>SLC provide borrowers with the option to switch to repayments via direct debit when they are nearing the end of their loan repayments. This prevents overpayments entirely.</p> |