More than 1.1m customers have used SLC’s Digital Refund Service
Source: gov.uk (2025-10-29)

SLC has received more than 1.1 million refund requests through its Digital Refund Service, which offers a self-serve route for customers to request Below Threshold refunds.

The figure has been announced today (29 October 2025) as SLC issues its annual Student loan repayments via PAYE eligible for refund - Tax Year 2024/25 (https://www.gov.uk/government/statistics/student-loan-repayments-via-paye-eligible-for-refund-tax-year-202425/student-loan-repayments-via-paye-eligible-for-refund-tax-year-202425-6-april-2024-5-april-2025). The ad hoc statistical release provides more information on the total number of customers who have correctly made repayments under the four refund scenarios, the total amount repaid, as well as the total refunds provided to customers in 23/24 and 24/25 tax years, as well as 25/26 to date.

Under the Education (Student Loans) (Repayment) Regulations, there are four refund scenarios, which the publication covers. These are:
- Below Threshold Refunds – Student loan deductions are based on how much an individual earns during a pay period, for example each week or month. If a customer’s earnings go above the weekly or monthly repayment threshold, they will correctly have a repayment taken from their salary. At the end of the year, if their total earnings are below the annual threshold, the customer can request a Below Threshold refund. They cannot request this until the end of the tax year once HMRC has provided the customer’s annual earnings information to SLC.
- Credit balance refunds – If a customer has not set up a Direct Debit towards the end of their loan, repayments may still be taken from their salary after the loan balance has been fully cleared. At the end of the loan term, there is an agreed process that requires the employer to action the HMRC stop notification. Depending on when this is completed in the payroll process, further deductions may be taken. However, if SLC holds up-to-date bank details, any over-repayments will be refunded automatically to the customer.
- Early repayment refunds – Customers are generally due to start repaying their loans the April after they finish or leave their course and begin employment (a date that is known as Statutory Repayment Date). If a customer starts making repayments before this date – often due to an employer admin error – the customer can request a refund.
- Wrong plan type refunds – If an employer places the customer on the wrong plan type for their loan, the customer can request a refund.
The majority of customers eligible for refunds fall into the ‘Below Threshold’ category. The digital service was introduced in May 2024 and makes it easier for eligible customers to claim a refund via their online account. In tax year 2024/25, £142m was refunded to 575,100 customers in this scenario, with payments made directly into their bank accounts. This is a step in our strategy to deliver more modern digital journeys for our customers.

In the current tax year, SLC has contacted customers eligible for a Below Threshold refund, a total of 642,200 customers (since April 2025).

SLC must wait until it receives customer annual earnings information from HMRC before it can proactively communicate with customers. Communications will continue to be sent to customers as eligible refunds are identified throughout the tax year.

SLC cannot provide financial advice, and customers are urged to consider their own personal circumstances before requesting a refund. Any refund provided will be added back onto the customer’s student loan balance.

Steven Darling, Customer Experience Director, at SLC, said: “At SLC, we’re committed to delivering a modern, simple and digital experience that works for customers. The Digital Refund Service is a great example of how service improvements are helping repayment customers manage their loans more easily.

“This service has been designed to support customers who are eligible for Below Threshold refunds — the most common type of refund — and provides a straightforward process to request a refund through their online account. With over 1.1 million refund requests submitted since launch, it’s clear that the service is both valuable and accessible.

“To ensure customers don’t miss important updates about refunds, I would also encourage customers to ensure that their contact details are up to date and remind them that they must update their bank details in their online account to submit a refund request.”

Customers can access SLC’s full refund guidance here, (https://gettingarefund.campaign.gov.uk/) including a step-by-step video showing how to request a refund through their online account.