A new digital refund service has been used by 418,000 customers
in the first six months. As it continues to improve its customer
experience, and in response to customer feedback, in May 2024,
SLC introduced a new service into the online account for
repayment customers.
The simple, digital service is an easy way for customers to
self-serve, requesting a below threshold refund, which is then
paid directly into their bank account.
The figure has been announced today (31 October 2024) as SLC's
issues a new statistical publication - Student loan repayments
via PAYE eligible for refund - Tax Year 2023/24. 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 tax year.
Under the Education (Student Loans) (Repayment) Regulations,
there are four refund scenarios, which the publication covers.
These are:
· Below Threshold Refunds - a correct repayment
may be taken if a customer's earnings are above the pay period
threshold (e.g. due to overtime or bonus) but their total income
for the year is below the annual threshold. SLC must wait until
HMRC provides the customer's annual earnings information at the
end of the tax year, before a refund can be provided to eligible
customers.
· Over-repayment refunds – when a customer had
paid off their loan, but an additional repayment is taken, due to
the timing of pay dates and the request to stop deductions being
processed at the employer side. If SLC has up-to-date bank
details, a refund will be paid automatically to the customer.
· Early repayment refunds – a customer has a
repayment taken before they are required to begin repaying (a
statutory date that generally occurs in April after they finish
or leave their course and commence employment).
· Wrong plan type refunds – the employer places
the customer on the wrong plan type for their loan.
Since May, £61.6m has been successfully refunded to 248,000
customers, in the below threshold refund
scenario, as a result of the new refund service. To support the
introduction of the new service, SLC has proactively contacted
customers who are eligible for a below threshold refund* in the
23/24 tax year. From the almost 700,000 customers that have been
contacted (by the end of October 2024), 75% of customers have
opened the email and a third have requested a refund, after
considering their own personal and financial circumstances.
Annual earnings information is received from HMRC throughout the
year, and SLC will continue to proactively communicate with
customers as eligible refunds are identified.
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.
, Customer Experience
Director, at SLC, said: “At SLC, we want to provide the best
possible customer experience, and from the feedback we receive
from customers, they want to be able to self-serve in their
online account.
“With a below threshold refund being the most common reason why a
customer might be eligible for a refund, we've made it quick and
easy to request a refund through the online account. The figures
in our latest report demonstrate the value of these improvements,
with £61.6m being paid to 248,000 customers since May 2024.
“I would encourage customers to keep their contact and bank
details up to date in their online account to ensure they don't
miss any key communication regarding refunds.”
Customers can read all of SLC's guidance and refund information
here, which also includes a step by step video guide of how to
request a refund through their online account.
