Why this happens
Student loan repayments are worked out per pay period, not across the whole year. So one high-earning month, whether a bonus, overtime or a lump sum, can trigger a repayment even though your income across the full tax year ended up below the threshold.
It catches out anyone whose income is uneven: people who worked only part of the year, seasonal and irregular workers, and anyone who had one unusually large month.
The 2026-27 thresholds
| Plan | Annual threshold |
|---|---|
| Plan 1 | £26,900 |
| Plan 2 | £29,385 |
| Plan 4 | £33,795 |
| Plan 5 | £25,000 |
| Postgraduate Loan | £21,000 |
How to check
- Find your total income for the tax year. Your P60 shows this.
- Compare it against your plan's threshold for that year.
- Check your payslips: were student loan deductions taken during that year?
- If your whole-year income was below the threshold but deductions were taken, you are likely owed a refund.
How to claim, free
To be straight with you: for a clear-cut case you can claim this yourself at no cost. Sign in to your online student loan repayment account and use the request a refund option, or contact the SLC directly. Refunds are usually paid within about 28 days. Have your payslips, P60 and customer reference number ready.
One limit worth knowing: you can only reclaim accidental overpayments like this one. Extra voluntary repayments you chose to make are not refundable.
If the SLC refuses, delays or disputes your figure
That is where a firmly worded request with your figures set out, and a clear escalation route to the Independent Assessor behind it, changes the outcome.
Over-Deduction Refund Request
For when the SLC refuses, disputes your figure, or drags past 28 days. Sets out the error, the evidence and your calculation, and asks for the account corrected and the money back. £15.
The other three refund reasons are in the refund hub. If the SLC has already said no, the complaints guide sets out the escalation ladder.
The letter for this
Over-Deduction Refund Request
Written for this specific ground, with the law cited and the evidence demands built in. Complete the placeholders and send it.
Included free with the letter
- How Student Loan Complaints Work
- You May Be On the Wrong Repayment Plan
Frequently asked questions
Why was a student loan repayment taken when I earned under the threshold?
Because repayments are calculated per pay period, not across the whole year. If one month pushed you above the monthly equivalent of your threshold, through a bonus, overtime or a lump sum, payroll takes a repayment for that month even if your income across the full tax year ended up below the annual threshold.
Can I get that money back?
Yes. If your total income for the tax year was below your plan's threshold for that year but deductions were taken, that is one of the four official refund reasons and you can reclaim it. You can do this yourself for free through your online repayment account.
Which threshold do I compare against?
The threshold for your plan in the specific tax year you are checking, not the current one. Thresholds change year to year, so checking a 2023-24 deduction against a 2026-27 figure will give you the wrong answer.
Who does this affect most?
People with irregular income. Seasonal workers, anyone who worked only part of a year, people who had a single large bonus or overtime spike, and those moving in and out of employment. Steady salaried earners above the threshold all year are not usually affected.
What evidence do I need?
Your P60 for the year, which shows your total income, your payslips showing the deductions taken, and your SLC account statement. Those three documents establish the whole case.
Sources: gov.uk, Repaying your student loan (getting a refund, and what you repay). Thresholds last checked 19 July 2026. Thresholds change each tax year: check gov.uk for the current figures.