SLC has received more than 1.1 million refund requests through
its Digital Refund Service, which offers a self-serve route for
customers to request Below Threshold refunds.
The figure has been announced today (29 October 2025) as SLC
issues its annual Student loan repayments
via PAYE eligible for refund - Tax Year 2024/25. The ad hoc
statistical release provides more information on the total number
of customers who have correctly made repayments under the four
refund scenarios, the total amount repaid, as well as the total
refunds provided to customers in 23/24 and 24/25 tax years, as
well as 25/26 to date.
Under the Education (Student Loans) (Repayment) Regulations,
there are four refund scenarios, which the publication covers.
These are:
- Below Threshold Refunds – Student loan deductions are based
on how much an individual earns during a pay period, for example
each week or month. If a customer's earnings go above the
weekly or monthly repayment threshold, they will correctly have a
repayment taken from their salary. At the end of the year, if
their total earnings are below the annual threshold, the customer
can request a Below Threshold refund. They cannot request this
until the end of the tax year once HMRC has provided the
customer's annual earnings information to SLC.
- Credit balance refunds – If a customer has not set up a
Direct Debit towards the end of their loan, repayments may still
be taken from their salary after the loan balance has been fully
cleared. At the end of the loan term, there is an agreed process
that requires the employer to action the HMRC stop notification.
Depending on when this is completed in the payroll process,
further deductions may be taken. However, if SLC holds up-to-date
bank details, any over-repayments will be refunded automatically
to the customer.
- Early repayment refunds – Customers are generally due to
start repaying their loans the April after they finish or leave
their course and begin employment (a date that is known as
Statutory Repayment Date). If a customer starts making repayments
before this date – often due to an employer admin error – the
customer can request a refund.
- Wrong plan type refunds – If an employer places the customer
on the wrong plan type for their loan, the customer can request a
refund.
The majority of customers eligible for refunds fall into the
‘Below Threshold' category. The digital service was introduced in
May 2024 and makes it easier for eligible customers to claim a
refund via their online account. In tax year 2024/25, £142m
was refunded to 575,100 customers in this scenario, with payments
made directly into their bank accounts. This is a step in our
strategy to deliver more modern digital journeys for our
customers.
In the current tax year, SLC has contacted customers eligible for
a Below Threshold refund, a total of 642,200 customers (since
April 2025).
SLC must wait until it receives customer annual earnings
information from HMRC before it can proactively communicate with
customers. Communications will continue to be sent to customers
as eligible refunds are identified throughout the tax year.
SLC cannot provide financial advice, and customers are urged to
consider their own personal circumstances before requesting a
refund. Any refund provided will be added back onto the
customer's student loan balance.
, Customer Experience
Director, at SLC, said: “At SLC, we're committed to delivering a
modern, simple and digital experience that works for customers.
The Digital Refund Service is a great example of how service
improvements are helping repayment customers manage their loans
more easily.
“This service has been designed to support customers who are
eligible for Below Threshold refunds — the most common type of
refund — and provides a straightforward process to request a
refund through their online account. With over 1.1 million refund
requests submitted since launch, it's clear that the service is
both valuable and accessible.
“To ensure customers don't miss important updates about refunds,
I would also encourage customers to ensure that their contact
details are up to date and remind them that they must update
their bank details in their online account to submit a refund
request.”
Customers can access SLC's full refund guidance here, including a
step-by-step video showing how to request a refund through their
online account.
