Student Loans Company digital refund service reaches 1.6 million requests
On 29 October 2026, the Student Loans Company announced that its Digital Refund Service has handled over 1.6 million refund requests since launching in 2024. The milestone accompanied an annual statistical release covering student loan repayments made through Pay As You Earn. The service allows former students to reclaim money deducted from their wages when their overall income falls below the annual repayment limit. In the 2025/26 tax year alone, the company paid out £97.6 million to 416,400 customers who earned under this threshold. This matters because many workers have loan payments automatically taken from weekly or monthly pay packets during busy periods, even if their total annual income stays below the threshold. However, claiming a refund adds that amount back onto the individual's overall student loan balance, so borrowers must decide if reclaiming the cash fits their personal financial plans.
What was announced
The Student Loans Company (SLC) reported on 29 October 2026 that more than 1.6 million refund requests have been submitted through its online portal since 2024. The figure was published in an ad hoc statistical release detailing repayments taken through Pay As You Earn (PAYE).
Most claims come from borrowers in the Below Threshold category. Income tax deductions occur during individual pay periods when a worker passes weekly or monthly earning limits. If annual pay finishes below the yearly threshold, the borrower can request a refund at the end of the tax year. In 2025/26, SLC sent £97.6 million directly to bank accounts for 416,400 customers in this situation.
The release outlines three other refund categories:
- Credit balances: repaying money after a loan balance is fully paid off.
- Early repayments: paying before the official Statutory Repayment Date due to employer errors.
- Incorrect plan types: employers placing staff on the wrong repayment plan.
What it means
Borrowers who earn fluctuating pay can get back money deducted during high-earning weeks. SLC contacts eligible customers directly once HM Revenue and Customs (HMRC) shares annual earnings data.
Getting money back has trade-offs. Any refunded amount goes straight back onto the customer's overall student loan balance.
For other categories, rules apply differently. Credit balances are refunded automatically if SLC has the customer's current bank details. Workers on incorrect plan types can download an Active Plan Type letter from their account to give to employers.
What the announcement does not tell us
The announcement does not state the total cash value of all 1.6 million refund requests processed since 2024. It gives figures for the 2025/26 tax year, but leaves out total sums for earlier or current periods.
The release does not explain how long a digital refund request takes to process from submission to payment. It also does not disclose how many customers with overpayments fail to claim their money back or lack updated bank details for automatic refunds.
How this was written
This analysis was written with AI from the official announcement below, using only facts that announcement states. The quoted wording is gov.uk: Student Loans Company’s own. Always check the original before acting on anything here.
SLC’s Digital Refund Service has received more than 1.6 million refund requests since it launched in 2024.
Opens www.gov.uk
More from gov.uk: Student Loans Company
- Applications for the Lifelong Learning Entitlement (LLE) are now open30 October 2026
- SLC pays £5.7billion in student finance at the start of the 26/27 academic year21 October 2026
- SLC pays £0.8 bn in Maintenance Loan payments to students today21 September 2026
- SLC's Annual Business Plan 2026-273 September 2026
- Preparing for Payment2 September 2026
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