Personal loans

FORMER University students could be owed £1,000s in overpaid loans – here is how to check if you can get a refund.

In the last tax year, over one million third level education leavers overpaid their student loans, according to figures released by the Student Loans Company (SLC). 

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But there are a number of reasons you may have been overcharged on your loan.

According to MoneySavingExpert, this includes beginning to repay the loan during some months, despite not earning enough in the full year.

You are only required to pay your loan back once your income exceeds a certain annual threshold.

This varies depending on what type of plan you were on when you started university. There are five plans in total.

For example, those on Plan 1, who attended university between 1998-2011 are required to earn a minimum of £26,065 before they begin paying back their loan.

Minimum earnings thresholds vary from plan to plan, with those on Plan 2 who attended university between 2021-22 being required to earn £28,470 before they start making repayments.

The blog said that if your earnings vary throughout the year, i.e. if you received a bonus, this could lead you to start making repayments before you are actually required to.

Another reason you may have overpaid is if you were put on the wrong plan.

This can happen if you filled in the student loan section of the HM Revenue & Customs (HMRC) starter checklist form wrong.

You can check which plan you are on by visiting the Gov.uk website.

Alternatively, you may be overcharged if you began repaying your loan too early or you had money deducted after the loan was fully repaid.

How to get a refund if you have overpaid

If you think you have been overcharged, you can get the money back and there a few ways you can go about this.

The blog said that former students who began repaying the loan despite not meeting the earnings thresholds can request a refund online.

This is done via the government’s Student Loan Company (SLC) online portal.

To do this, you will need to sign in to your online repayment account and select ‘request a refund’.

Once you’ve requested a refund through your online account, it will be processed in 28 days.

The money will get paid into your bank account.

It is also worth nothing that this only applies for tax years up to 2023-24.

More ways to claim

Alternatively, students can speak to their employer or call the SLC.

This may be applicable if you entered the wrong plan when filling out an HMRC starter form.

Ahead of your call, you can check what plan you are on in your online account and download an ‘active plan type letter”.

You can call on 0300 100 0611 to discuss the matter with the SLC.

You can also call the helpline if you began repaying your loan too early.

The MSE blog said: “When you get through, explain your situation and ask to reclaim the money you’re owed.

“To make the process smoother, before ringing see if you can dig out any old payslips, your payroll number, and/or your PAYE reference number.”

There is no restriction on how far back you can claim, so if you think you may have been affected years ago you can still ring up.

If you had money deducted after the loan was fully repaid, HMRC should pay you back this money automatically, 

Readers of the blog have claimed back as much as £3,773 by using these methods.

One said: “Thank you so much. I knew something wasn’t right when I lodged my tax returns and reading Martin’s article was the catalyst for a sustained attempt to work out what had happened. I received £3,773 back.”

While another said the process only took 15 minutes.

They explained: “I spent 15 minutes on the phone and got £555 back for overpayments on my student loan.

“Most was because of my maternity leave. Thanks so much, couldn’t have come at a better time.”

How student loan plans work

If you wish to attend university you may take out a loan to help cover the costs.

The loan is paid directly to the university or college on your behalf.

Repayments start from the first April after you finish or leave your course.

You repay 9% of your income above the repayment threshold.

This means that the majority or basic-rate taxpayers lose 37p for every £1 they earn above the threshold – 20p as income tax, 8p as national insurance and 9p for a student loan.

Your repayment threshold will vary depending on when you studied at university.

Interest is charged on your loan from the day you receive the first payment until it is repaid in full.

A DRAGON’S Den winner and former Team GB gold medallist fraudulently used Covid loans to buy himself a £1.8million mansion.

Rick Beardsell illegally pocketed £100,000 worth of taxpayers cash to purchase his home – despite receiving a £75,000 investment during his stint on the BBC show.

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The 46-year-old fiddled two Covid Bounce Back loans to buy himself five-bed Holly House in the exclusive village of Prestbury, Cheshire.

Dad-of-two Beardsell was only entitled to apply for one loan worth £50,000, but fraudulently applied for two and greatly exaggerated his annual turnover by up to 23 times.

It came after the world champion sprinter had successfully secured investments from TV Dragons Tej Lalvani and Deborah Meaden for his successful protein shake bottle business, ShakeSphere.

Chester Crown Court heard he applied for the loan to prop up his other company, Sports Creative Ltd, but none of the money went towards the sportswear business.

Prosecutor Geoff Whealan told the court Beardsell made the fraudulent applications to HSBC in December 2020 and then to NatWest in January 2021.

He said: ”The defendant stated on the HSBC form that the turnover of Sports Creative was £485,000 and on the NatWest form said it was £320,000.

“But unaudited financial statements showed turnover for the year end February 2020 was £20,622.

”The turnover was clearly exaggerated to secure the maximum bounce back loan.

“Subsequent transactions showed the bounce back loan funds were not being used for the economic benefit or business purposes of Sports Creative at this time.”

The money arrived in Sports Creative’s account in January 2021, but then almost £400,000 was transferred to Beardsell’s personal Santander account in the space of six months.

Then £431,160.80, including the remaining bounce back loan funds, was transferred to a firm of solicitors for the purchase of Holly House he bought with his wife Ezster.

Mr Whelan added: ”In effect the bounce back loan funds had been used for this purchase.

“It can be inferred from the defendant’s conduct that it was his intention to use the bounce back loans for this purpose at the time he made the application for it.”

Beardsell, who won two World Records for sprinting, faced three years in jail after he admitted two charges of fraud.

In October 2024, he attended an interview under caution at the Insolvency Services offices.

In a statement he said: ”The guidance pertaining to Bounce Back Loans indicated that the proceeds of such loans may be utilised for any purpose that yields a direct benefit to the company.

”At that juncture, I sought professional advice and was advised that such purposes include, but are not limited to, the coverage of overhead expenses or outstanding liabilities, as well as the investment in company assets or property.

“The funds that were transferred to my personal account constituted a director’s loan and other economical overheads for the business.”

Mitigating, his counsel Nichola Cafferkey explained that the loans had been repaid in full to the banks.

She said: ”The loss of his good character is of some significance in respect of a man who has dedicated his life to his family, his professional entities and also his sporting endeavours.

“These offences were out of character and were committed four years ago.

“He has taken responsibility and repaid the money back. He knows that it’s his own fault.

“He has brought shame on his family and brought shame on himself.

”His wife is also his business partner and concerns that they have had about the ability to provide financially for their young children have been significant.”

The court also heard that Beardsell had suffered a series of medical issues both before and after securing the loans.

Ms Cafferkey continued: “A year prior to the submission of the first loan application, the defendant was diagnosed with an aggressive form of testicular cancer and required surgery and extensive chemotherapy.

“The chemotherapy was successful but led to some significant side effects.

”One of those being vertigo, of which he had a severe episode which required hospitalisation and thereafter there are ongoing long-term issues as a result of that.

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“The investigations brought on by the defendant’s own actions has had an impact on his family which has led to a situation where he has been experiencing significant stress over the past few years.

“On top of that there are ongoing knee pains associated with his athletic success at national and international level.

“He has been running a business for many years without issue and it is plain he is extremely remorseful and regretful for his actions.

“The impact on his wife’s physical health in terms of stress and strain has been significant. There has been significant weight loss and insomnia.

“This will be the only time that Richard Beardsell appears before the court.”

Beardsell was sentenced to 18 months in prison, suspended for two years.

He was also ordered to complete 250 hours of unpaid work and pay costs of £11,142.70.

Judge Simon Berkson told Beardsell: “You fraudulently lied and lied again in your applications for these loans.

“They were supposed to be for use in keeping your business running but the money was used for your own personal needs and the needs of your family.

“This is not a victimless crime. The government was trying to help struggling businesses at the time of national crisis.

“People were in lock down, people were dying and people were very ill at the time when people required their public services.

“You used fraudulently obtained public funds for your own use, depriving honest people of the scheme’s funds when the country was in crisis.

“You are a generally successful man both in business and in sports, particularly your involvement with athletics.

“You continue to run your business and it was on the TV programme Dragons’ Den.

“You are a married person with two children and they are young children. You have survived an aggressive form of cancer.

“I have concluded that an immediate custodial sentence would have a significant harmful impact on your wife and children.”

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