What has Martin Lewis said about student loans? How one million people could be owed money
6 December 2023, 15:22
The Money Saving Expert has revealed that one million people could be eligible for a student loan refund.
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Martin Lewis has issued a warning to those who are repaying their student loans, as they may find they have overpaid on their university fees and could be due a refund.
Speaking on the Martin Lewis Money Show, the Money Saving Expert explained that he and his team had put in a Freedom of Information request to the Student Loans Company (SLC) which showed that over a million people overpaid in the 2022/23 tax year, meaning that they were eligible to claim back hundreds or thousands of pounds.
The TV host also took to X, formally known as Twitter, to explain that the "vast majority" of people who can reclaim money were in the category where they didn’t earn enough to reach the payment threshold. According to Martin, people who went to university between 2012 to 2022 only have to repay the loan if they earn over £27,295. For those who went to university between 1998 and 2011, that mark is £22,015.
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It is believed that there are 165,000 people on the wrong student loan repayment plan and could be owed a refund.
Martin revealed: "So you only have to repay if you earn over £27,295. Let's take a twelfth of that, the sort of monthly average amount, and you get to £2,274. So, because you pay this through the payroll, through PAYE [pay-as-you-earn], if you earn over £2,274 in a month, they take 9% of whatever is above that to go towards your student loan."
He continued: "The Government tells firms if they don't know which plan you were on to default to 'Plan 1', which is where you start repaying over £22,000. Yet millions of you, the majority, are on plans where you pay over £27,000. So, if you earn £24,000 and you were on the default, you would have repaid when you didn't need to do so."
Watch Martin Lewis explain student loan repayments here
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Are you still paying off your student loan? Our FOI shows over 1m people overpaid last year and can claim £100s or £1,00s back.— Martin Lewis (@MartinSLewis) October 16, 2023
I’ve recorded this video briefing to talk you through who’s due money and how to do it...
Please share with anyone impacted pic.twitter.com/HAGpS0v75M
Martin also announced that there were 57,000 people who have had money deducted after they had already fully repaid their student loan, however they will receive their refund automatically.
A further 39,000 people had started to repay their loans too early as it is not necessary to make payments until the April after you have left university.
This latest warning comes after the Martin Lewis announced the best energy saving tips for this winter.
The Money Saving Expert team revealed that the public should make sure their home is insulated correctly and suggested using a boiler timer to manage their usage.
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