The Student Loans Company (SLC), which administers UK student loans, said on 29 October 2026 that its online refund service has now received more than 1.6 million requests. The service has been running since May 2024.
Most of these are so-called “Below Threshold” refunds. Loan repayments are taken from pay each week or month. If you earn more than the monthly threshold in a given month, your employer will correctly deduct a repayment. But if over the whole year you earn less than the annual repayment threshold, you can ask for a refund.
In the 2025/26 tax year the SLC refunded £97.6m in this way. The money went to 416,400 people, straight into their bank accounts. The SLC contacts eligible customers after the end of the tax year, once it receives earnings data from HMRC.
There are three other situations in which a refund is due: an over-repayment after the loan has been fully repaid, repayments taken before the date repayment was due to start (often because of an employer error), and repayments taken under the wrong repayment plan.
What it means for you
This affects many Poles who studied in the UK and work variable hours, seasonally or for part of the year. A single month with overtime or a bonus can trigger a repayment, even though over the year you earn below the threshold. That money can be recovered. Employers and HR departments should also check that an employee is on the right repayment plan and that deductions have not started too early.
Our assessment
This is good news, but there is a catch. The SLC stresses clearly that any refund is added back onto the loan balance. So this is not “free” money, just a deferred repayment. For someone on a low income, cash now may matter more. For someone who wants to pay off the debt faster, a refund may not be worth it. The decision depends on your circumstances.
What to do
- Log in to your SLC account and check whether you have been invited to apply – the guidance is on GOV.UK.
- Download the “Active Plan Type” letter from your account and give it to your employer so that repayments are calculated under the right plan.
- Give the SLC your up-to-date bank details – then any over-repayment after you clear the loan will be refunded automatically.
- Beware of texts and emails “about a refund”. Only apply through your own SLC account, never via a link in a message.
Source: Student Loans Company, GOV.UK (29 October 2026).
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