ESTIMATEIllustrative estimates for the 2026/27 tax year (6 April 2026 – 5 April 2027) as of 3 November 2026 — not financial advice. Thresholds from GOV.UK; interest rates for 1 September 2026 – 31 August 2027 from the Student Loans Company. Your payslip may differ by a pound or two because payroll rounds each pay period.
The four common reasons for a refund
- Your annual income was below the threshold. Payroll works month by month (or week by week), so overtime, a bonus or a back-dated pay rise can trigger a deduction even if your income for the whole tax year ends up under the yearly threshold.
- You repaid more than you owed. Employers keep deducting until told to stop, which can take a while after your balance reaches zero — especially if you also made voluntary payments.
- Deductions started too early. You are not due to repay until the April after you leave your course. Deductions taken earlier can be refunded.
- The wrong plan was used. For example, Plan 5 deductions on a Plan 2 loan (£395 a year too much on salaries above £29,385), or a Postgraduate Loan deduction you don’t owe.
Example: the bonus month
A Plan 2 graduate on £27,000 is paid £2,250.00 a month — below the £2,448 monthly threshold — so nothing is deducted for eleven months. In March they receive a £3,000 bonus, making that month’s pay £5,250.00. Payroll deducts 9% of the excess over the monthly threshold: £252. But their income for the whole year is £30,000, and 9% above £29,385 is only £55. They have overpaid by about £197 and can claim the difference back. If the bonus had taken them to under £29,385 for the year, the whole £252 would be refundable.
How to claim
- Wait until the tax year has ended (after 5 April) — the SLC needs your final annual income from HMRC.
- Sign in to your Student Loans Company online account and check the repayments recorded for the year. You can also phone the SLC.
- Request a refund and give your bank details. The SLC may ask for evidence such as your P60 or final payslip.
- The SLC checks your income with HMRC and pays the refund to your bank account. Refunds of tax-year overpayments are only made where repayments exceed what was due on your annual income.
Check every April. Compare your P60 “student loan deductions” with the annual figure for your salary on our
salary pages. A gap of more than a few pounds is worth investigating.
Avoiding over-repayment at the end
When you are close to repaying in full, the SLC may offer to switch you from payroll deductions to Direct Debit for the final period so that payments stop exactly when the balance reaches zero. Keep your contact details up to date so you get that message. If you are making large voluntary payments, tell the SLC once the balance is cleared and ask your employer to stop deductions.
Self-employed and refunds
If you file a tax return, the student loan calculation is done on your annual income, so bonus-month over-deductions are usually corrected automatically: PAYE deductions are credited against the amount due. Where PAYE deductions exceed the total due for the year, HMRC or the SLC repays the excess. See self-employed student loan repayments.
Refunds after a loan is written off
If deductions continue after your write-off date — 25, 30 or 40 years depending on the plan (see when is my student loan written off?) — everything taken after that point should be refunded. The same applies to deductions after a loan is cancelled because of disability.
FAQ
Can I get a refund if I earned less than the student loan threshold?
Yes. If your total income for the tax year was below your plan’s annual threshold but repayments were deducted, you can ask the Student Loans Company for a refund after the tax year ends.
Why was student loan deducted from my bonus?
Employers work out repayments for each pay period on its own. A bonus can push one month above the monthly threshold even if your yearly income is lower, so a deduction is made. You can claim back any amount above what was due on your annual income.
How do I claim a student loan refund?
After 5 April, contact the Student Loans Company through your online account or by phone, check the repayments recorded and request a refund to your bank account. You may need your P60.
What if I repaid more than I owed?
The Student Loans Company refunds any amount paid after the balance reached zero. Ask your employer to stop deductions once the SLC confirms the loan is repaid.
Can I get a refund if the wrong plan type was used?
Yes. Tell your employer and the Student Loans Company. The SLC will correct the record and refund any over-deductions.
Related student loan articles
Student loan thresholds 2026/27Every plan, per year, month and weekWhich student loan plan am I on?Plan 1, 2, 4, 5 or PostgraduatePlan 2 vs Plan 5 explainedThresholds, interest and lifetime costShould I overpay my student loan?When overpaying saves money — and when it doesn’tHow student loan interest is calculatedRPI, the Plan 2 sliding scale and the 6% capStudent loan repayments if self-employedSelf Assessment, 31 January and mixed incomeStudent loan when moving abroadOverseas income assessment and repaymentsStudent loan on £27,000Plan 2 £0/mo · Plan 5 £14/moStudent loan on £30,000Plan 2 £4/mo · Plan 5 £37/moStudent loan repayment calculatorAll plans, any salary
Sources
- GOV.UK, Repaying your student loan – what you pay: 2026/27 thresholds Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000, Postgraduate Loan £21,000; 9% (6% for PGL) of income above the threshold; rules for more than one plan (read 3 November 2026).
- Student Loans Company / Department for Education, Student loans interest rates and repayment threshold announcement, 10 August 2026: RPI 4.1%; Plan 1 4.1%; Plan 2 4.1%–7.1% capped at 6%; Plan 3 (Postgraduate) capped at 6%; Plan 5 4.1% (1 Sep 2026 – 31 Aug 2027); Plan 1 threshold £28,005 from 6 April 2027.
- Department for Education press release, Interest rate cap introduced to protect Plan 2 borrowers, 7 April 2026, and written ministerial statement of 13 April 2026: 6% cap for 2026/27; Plan 2 upper interest threshold £52,885 from 6 April 2026.
- Autumn Budget 2025 (26 November 2025): Plan 2 repayment threshold frozen at £29,385 for 2027/28 to 2029/30 (reported by Which?, 5 December 2025).
- Take-home pay: HMRC 2026/27 income tax and National Insurance for England, Wales and Northern Ireland (personal allowance £12,570, 8%/2% employee NI), as used on our UK salary after tax pages.