Student Loan Refund Due?

Hi,

Just spoken to the Student Loan Company about a refund. They said they owe me £475 for 2016 when I earnt below the threshold. They said they can put it back in my bank but then I would need to pay it back to them by PAYE, is this correct???

My student loan was paid off in full in 2019 so not sure if this affects refunds?

Thanks

Comments

  • la531983
    la531983 Posts: 1,667
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    edited 8 December 2023 at 3:03PM
    I would just leave it. If they pay you back you still owe it and they will just garnish your salary to do it over the next few months/years, so what's the point?

    If anything it's done you a favour... They are admitting they made a mistake and they are merely offering to rectify it, you would however still owe the money through PAYE
  • kaMelo
    kaMelo Posts: 2,284
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    edited 8 December 2023 at 11:32PM
    buckle79 said:

    Hi,

    Just spoken to the Student Loan Company about a refund. They said they owe me £475 for 2016 when I earnt below the threshold. They said they can put it back in my bank but then I would need to pay it back to them by PAYE, is this correct???

    My student loan was paid off in full in 2019 so not sure if this affects refunds?

    Thanks

    Yes, why would it not?
    Your student loan balance is currently zero, if they refund you the £475 then your student loan balance will increase from zero to £475 upon which they will charge interest until it's repaid in full. Personally speaking, I'd leave it as is.
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