Student loans: Former university students called for repayment

There are four reasons why people are eligible for a refund.

The main reason the total amount is £146 million is because people were given refunds even though they didn’t earn above the annual threshold at which refunds automatically kick in.

This can happen if someone earns above the monthly threshold that triggers loan repayments to begin, for example by working extra hours, taking a new job or receiving a bonus, but their annual earnings still fall below the annual threshold.

Since May, those who fall into this category have a New service offered by SLC to request a refund online, external. 418,000 people did so in the first six months of the service.

Other reasons may be that refunds are received from former students before they are due; this is usually in April after they finish their studies.

Some people may have been given the wrong payment plan by their employers, while others may have continued making payments after the loan was paid in full.

Any money overpaid is taken into account towards the full repayment of the loan and can save graduates on interest in the long run.

But as Mr. Allingham said, many college graduates may need cash for daily expenses.

“This is definitely worth doing, especially as the cost of living crisis is still a bit lingering, having that extra cash boost now can make a world of difference,” Mr Allingham said.