SLC’s Digital Refund Service hits 1.6million refund requests
SLC’s Digital Refund Service has received more than 1.6 million refund requests since it launched in 2024.
Designed to put customers in control, the service provides a straightforward, self-service option for claiming Below Threshold refunds.
The milestone has been confirmed today (29 October 2026) as SLC issues its annual Student loans repayments via PAYE eligible for refund statistical release.
The ad hoc statistical release provides more information on the total number of customers who have made repayments under the four refund scenarios, the total amount repaid, as well as the total refunds provided to customers in 23/24,24/25, 25/26 tax years, as well as 26/27 to date.
Most customers who are eligible for a refund fall into the ‘Below Threshold’ category (see explanations below). Since May 2024, customers have been able to apply for these refunds quickly and easily through their online account using the refund service. Eligible customers are contacted directly by SLC at the end of the financial year and invited to submit a refund request for the previous tax year.
In tax year 2025/26, £97.6m was refunded to 416,400 customers in this scenario, with payments made directly into their bank accounts.
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.
Jackie Currie, SLC Director of Customer, 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.”
Customers can access SLC’s full refund guidance here, including a step-by-step video showing how to request a refund through their online account. 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.
Refund scenarios
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.
- Incorrect plan type refunds – If an employer places a customer on the wrong loan repayment plan, the customer may be entitled to a refund of any incorrect deductions. To help prevent this, customers can download an Active Plan Type letter from their online account and share it with their employer to ensure deductions are taken under the correct repayment plan.