Money-saving expert Martin Lewis has encouraged anyone who still paying off their student loan to check whether they have overpaid – and how you can apply for a refund
More than a million Brits are eligible to claim money back on their student loan payments.
Last month, the government confirmed maintenance loans and tuition fees in England were increasing in line with inflation ‘to help ensure the financial stability of the university sector’. The annual cost of an undergraduate degree in England and Wales will go up from £9,250 to £9,535 in the 2025/26 academic year. The changes will apply from 1 August 2025.
Most UK students are eligible for a loan to cover the fee of their tuition, which is subject to interest from the day you take it out. According to The Student Loans Company, graduates in England leave university with an average debt of £48,470 – and they’ll have to pay it back depending on which Plan they’re on.
What student loan payment plan am I on? (Student Finance England)
If you started your course on or after August 1, 2023, you will be on Plan 5. This applies to those studying an undergraduate course or a Postgraduate Certificate of Education (PGCE). You’ll be on a Postgraduate Loan plan if you’re studying a postgraduate master’s or doctoral course or Plan 2 if you take out a Higher Education Short Course Loan during this period.
If you started your undergraduate, PGCE, Advance Learner Loan, or Higher Education Short Course Loan between September 1, 2012, and July 31, 2023, you’ll be on Plan 2. Those who started their course before September 1, 2012, will be on Plan 1. For Wales, Scotland, and Northern Island, you can check your plan here.
When will I have to repay my student loan?
If you have a Plan 1 student loan, you’ll only start repaying when your income is more than £480 a week, £2,082 a month, or £24,990. This increases to £524, £2,274, and £27,295 respectively for those on Plan 2. If you’re on Plan 5, you’ll start making repayments when your income is over £480 a week, £2,083 a month or £25,000 a year.
If you’re over the threshold, you’ll repay nine per cent of your income (or six per cent if you’re on a Postgraduate Loan plan). For example, if you’re on Plan 1 and have an income of £33,000 a year, meaning you get paid £2,750 each month, you’ll pay £60 a month. There is no penalty for paying some or all of your student loan off early.
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In a TikTok video last month, money-saving guru Martin Lewis shared a clip from his eponymously named TV show. He warned that those who do not work for the entire 12 months of the year, or if you had a ‘big commission’ one particular month – you might have been subject to student loan repayments even though you’re still under the threshold. “Over a million people are in that position, and you can get the money back…” he said.
“The average payout on student loan claims is £280. This is very big and very easy to do, and it’s worth taking note of.” You an apply for a refund online here.
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