| answer text |
<p>The Student Loans Company (SLC) has a Service Level Agreement of 28 days to make
a refund to people who have made an over repayment on their student loan. Based on
telephone requests from January to March 2024, the SLC averaged 8 days from the point
the request was received to the point the refund was paid to the borrower’s bank account.</p><p>
</p><p>Student loans repayments for borrowers resident in the UK are made via HMRC
through the UK tax system. Employers deduct repayments each pay period for employees
with a student loan when their earnings are above the relevant repayment threshold
for that pay period.</p><p> </p><p>Over repayments can occur for a number of reasons,
for example the time lag between an employer making a PAYE deduction and HMRC receiving
and sending that payment to SLC, which can then confirm that a borrower has paid off
their student loan balance. HMRC provides the SLC with student loan repayment information
as reported by employers on a weekly basis. For this type of over-repayment, the SLC
can automatically make a refund of £5,000 where they are able to verify a borrower’s
bank account details.</p><p> </p><p>SLC provide borrowers with the option to switch
to repayments via direct debit when they are nearing the end of their loan repayments.
This prevents overpayments entirely.</p>
|
|
