Student Loans Company
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A new digital refund service has been used by 418,000 customers in the first six months. As it continues to improve its customer experience, and in response to customer feedback, in May 2024, SLC introduced a new service into the online account for repayment customers.
The simple, digital service is an easy way for customers to self-serve, requesting a below threshold refund, which is then paid directly into their bank account.
The figure has been announced today (31 October 2024) as SLCs issues a new statistical publication - Student loan repayments via PAYE eligible for refund - Tax Year 2023/24. The ad hoc statistical release provides more information on the total number of customers who have made repayments under the four refund scenarios, the total amount repaid, as well as the total refunds provided to customers in 23/24 tax year.
Under the Education (Student Loans) (Repayment) Regulations, there are four refund scenarios, which the publication covers. These are:
Below Threshold Refunds - a correct repayment may be taken if a customers earnings are above the pay period threshold (e.g. due to overtime or bonus) but their total income for the year is below the annual threshold. SLC must wait until HMRC provides the customers annual earnings information at the end of the tax year, before a refund can be provided to eligible customers.
Over-repayment refunds when a customer had paid off their loan, but an additional repayment is taken, due to the timing of pay dates and the request to stop deductions being processed at the employer side. If SLC has up-to-date bank details, a refund will be paid automatically to the customer.
Early repayment refunds a customer has a repayment taken before they are required to begin repaying (a statutory date that generally occurs in April after they finish or leave their course and commence employment).
Wrong plan type refunds the employer places the customer on the wrong plan type for their loan.
Since May, 61.6m has been successfully refunded to 248,000 customers, in the below threshold refund scenario, as a result of the new refund service. To support the introduction of the new service, SLC has proactively contacted customers who are eligible for a below threshold refund* in the 23/24 tax year. From the almost 700,000 customers that have been contacted (by the end of October 2024), 75% of customers have opened the email and a third have requested a refund, after considering their own personal and financial circumstances.
Annual earnings information is received from HMRC throughout the year, and SLC will continue to proactively communicate with customers as eligible refunds are identified.
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 customers student loan balance.
Steven Darling, Customer Experience Director, at SLC, said: At SLC, we want to provide the best possible customer experience, and from the feedback we receive from customers, they want to be able to self-serve in their online account.
With a below threshold refund being the most common reason why a customer might be eligible for a refund, weve made it quick and easy to request a refund through the online account. The figures in our latest report demonstrate the value of these improvements, with 61.6m being paid to 248,000 customers since May 2024.
I would encourage customers to keep their contact and bank details up to date in their online account to ensure they dont miss any key communication regarding refunds.
Customers can read all of SLCs guidance and refund information here, which also includes a step by step video guide of how to request a refund thr