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»Ê¹ÚÌåÓýapp borrower may be due a refund in the following instances:

• they've paid more than the total amount they owe
• their annual income was below the threshold
• they started making repayments before they needed to
• they've repaid more than they need to because their employer had them on the wrong repayment plan

»Ê¹ÚÌåÓýapp borrower can visit the gov.uk website to find out if they are due a refund.Ìý

»Ê¹ÚÌåÓýapp following examples demonstrate the position and assume that the annual threshold is £17,495 and the rate is 9 per cent.

Example 1 - Borrower's income is less than the annual threshold

»Ê¹ÚÌåÓýapp borrower has an annual salary of £13,320 paid weekly. No deductions will be made by the employer on the salary alone because the wages do not exceed the threshold of £336 per week.

However, in addition, a bonus of £900 is paid in week 32. For that week only the employer will have correctly made Student Loan deductions. »Ê¹ÚÌåÓýapp deduction made in accordance with the Student Loan Deduction Tables will be £74.

Because the borrower’s earnings for the year did not exceed the annual threshold of £17,495 a refund of the deductions made, £74, will be due.

Notes:

• 1)  »Ê¹ÚÌåÓýapp employer will not make a refund because deductions were made correctly according to the Student and Postgraduate Loan Deduction Tables which are non - cumulative.
• 2)  »Ê¹ÚÌåÓýapp Student Loans Company will handle any refund of repayment. For more information,  the borrower should visit gov.uk website.Ìý
• 3)  »Ê¹ÚÌåÓýapp weekly limit, below which no loan repayments need be made, is not an exact divisible of the annual threshold
  • »Ê¹ÚÌåÓýapp apparent discrepancy is because Student Loan deductions are always rounded down. A borrower could therefore earn slightly more than the strict weekly threshold before making payments because the resulting liability is less than £1.
  • »Ê¹ÚÌåÓýapp Student and Postgraduate Loan Deduction Tables have been devised to take the rounding - down factor into account.

Example 2 - Borrower's income is more than the annual threshold, (£17,495)

»Ê¹ÚÌåÓýapp borrower has an annual salary of £16,000 paid weekly. No deductions will be made by the employer on the salary alone because the wages do not exceed the threshold of £336 per week.

However, in addition, a bonus of £2000 is paid in week 32. For that week only the employer will have correctly made Student Loan deductions. »Ê¹ÚÌåÓýapp deduction made will be £176 (307.69 + 2000 - 336 x 9 per cent = £177).

It may appear that a refund of repayments is due to the borrower because, by reference to the annual threshold the position appears to be

Income (£18,000) - Annual Threshold (£17,495) X 9 per cent = £45. Refund due £132 (£177 - £45)

However, no refund of deductions is due to the borrower because

• 1)  »Ê¹ÚÌåÓýapp employer has deducted Student Loan repayments in accordance with the Student and Postgraduate Loan Deduction Tables
• 2)  »Ê¹ÚÌåÓýapp borrower's income for the year exceeds £17,495