Getting a Student Loan Overpayment Refunded 2026/27
It is more common than you might think to have student loan repayments deducted after your loan is actually paid off, or at the wrong repayment threshold entirely. This guide explains how to spot an overpayment in 2026/27 and how to get it refunded.
Common Causes of Overpayment
One frequent cause is a short delay between your loan actually being repaid in full and your employer being told to stop making deductions, since there can be a processing lag between the Student Loans Company confirming the loan is cleared and HMRC instructing your employer to stop, resulting in one or more months of deductions after the loan was already settled.
Another common cause is having the wrong repayment plan applied — for example being deducted under an earlier plan type with a lower repayment threshold than the plan that actually applies to your loan, or having deductions continue after you have already made a lump sum repayment that cleared or significantly reduced the balance.
Checking Your Position
Check your online account with the Student Loans Company (or equivalent body for your nation) to see your current balance, repayment plan type, and a history of repayments received, comparing this against the deductions actually shown on your payslips and P60 for the relevant tax years.
If your balance shows as fully repaid, or a lower amount than you would expect given your payslip deductions, this is a strong signal that a refund claim may be due.
Claiming a Refund
You can generally contact the Student Loans Company directly to query a suspected overpayment and request a refund, providing evidence such as payslips or your P60 showing the deductions actually made, alongside your loan account reference.
Refunds are typically paid directly to you rather than adjusted through payroll retrospectively, and processing can take some time, so it is worth raising a suspected overpayment as soon as you notice it rather than waiting.
Frequently Asked Questions
Why might I keep having student loan deductions taken after my loan is repaid?
There can be a short processing delay between your loan actually being cleared and your employer being formally instructed to stop deductions, meaning one or more additional months of deductions can be taken even though your loan balance has already reached zero.
How do I check if I am on the wrong student loan repayment plan?
Log into your account with the Student Loans Company to confirm which plan type applies to your loan, and compare this against the plan type your employer appears to be using for deductions on your payslip, since being on the wrong plan can mean too much or too little is deducted.
How do I claim back an overpayment from the Student Loans Company?
Contact the Student Loans Company directly, providing evidence of the deductions actually made (such as payslips or your P60) and your loan reference, and they will investigate and arrange a refund if an overpayment is confirmed.
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Will an overpayment be refunded automatically without me asking?
Not always — while the Student Loans Company aims to identify overpayments, delays and processing gaps mean it is worth proactively checking your own balance and deductions rather than assuming any overpayment will be automatically caught and refunded.
Can I be overpaid if I have more than one job?
Yes, having multiple jobs can sometimes complicate how student loan deductions are calculated across employers, so it is worth checking your combined deductions against your actual loan balance if you have more than one source of employment income.
Does making a voluntary lump sum repayment affect ongoing payroll deductions?
A lump sum repayment reduces your balance directly with the Student Loans Company, but your employer will generally keep making regular payroll deductions until formally instructed to stop, so it is worth checking your balance and confirming when deductions should end after a lump sum payment.
How long does the Student Loans Company usually take to pay a refund?
Processing times vary and are not fixed, so once you have submitted evidence of the overpayment it is worth following up if you have not heard back within a few weeks, rather than assuming the claim is progressing.
Is a student loan overpayment refund taxed?
A refund of your own overpaid deductions is simply returning money that was already taken from your net pay, so it is not additional taxable income, though you should keep records in case you need to explain the repayment on a tax return.
What if my employer refuses to stop deductions after I query them?
Your employer generally only stops deductions once instructed by HMRC, so if deductions continue after your loan is confirmed as repaid you should escalate the issue with the Student Loans Company so they can prompt HMRC to notify your employer.
Can I get a refund if I left the UK and student loan deductions continued abroad?
If you make repayments directly to the Student Loans Company after moving overseas and later find you have overpaid, you can still contact them with evidence of your payments to request a refund, following the same process as for UK payroll deductions.
Disclaimer: This guide reflects UK rules as they generally apply in 2026/27. This guide is for general information only and is not professional advice. Consult a qualified adviser and refer to gov.uk for current official guidance before relying on any treatment.
