UK university graduates urged by campaign group to check if they are entitled to student loan repayments after it was revealed almost £200m was overpaid last year.
Save the Student's comments come after the publication of figures showing hundreds of thousands of people currently repaying their loans are eligible for a share of £184 million in repayments.
It's easy to check if a repayment is due by logging into the government's Student Loan Company portal, where individual repayments can range from tens of pounds to over £1,000.
Tom Allingham of Save the Student said that for many, getting a refund could make all the difference.
Charlotte Gill is one of those former students who was entitled to a refund of her loan repayments, to the tune of £68.
She said it didn't make a huge difference “but every little bit counts when you're a student.”
“At the end of the day it's your money, it's not the government's money, so if you're entitled to a refund then absolutely take it,” she said.
Martin De'Ath received £396 back and claims the substantial payment left him wondering how he could have used it during the 10 months he went without it.
“At least I was really happy to get it back,” he said.
There are four reasons why people may be eligible for a refund.
The main reason, behind £146 million of the total, is that refunds were taken from people when their income did not exceed the annual threshold, in which case the refunds automatically kick in.
This can happen when a person earns above the monthly threshold that triggers the start of loan repayments, such as taking on additional duties, getting a new job or receiving a bonus, but that his annual income can nevertheless fall below the annual threshold.
Since May, those who fall into this category can use a new service offered by the SLC to request a refund online. In the first six months of service, 418,000 people did so.
Other reasons may be that former students must pay refunds before they are required to pay, which usually occurs in April after their studies have been completed.
Some people may have been put on poor repayment plans by their employers, while others may have continued making payments after their loan was paid in full.
Any amount overpaid counts toward full loan repayment and can save graduates money in the long run on interest.
However, as Mr. Allingham said, many college graduates may need money for everyday expenses.
“It's definitely worth doing, particularly even with the cost of living crisis still a bit lingering, having that extra influx of cash right now could make all the difference,” Mr Allingham said.
