The Student Loans Company has refunded tens of millions of pounds to students in just a few months since a new simplified online service was launched this year.

?show that a total of 216,300 UK graduates were refunded a total of ?61.1 million in the 2023-24 tax year.

And the data reveals that ?78.9 million has already been refunded so far in the 2024-25 tax year.

The most common reason for a refund is when graduates make a repayment despite earning below the annual threshold. This common error was responsible for ?26.5 million of the total in 2023-24 and 102,200 of the customers.

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The SLC said it has made ¡°significant improvements¡± to the below threshold refund process, including proactively contacting customers who are eligible for a below threshold refund in the 2023-24 tax year.

SLC has emailed 653,000 customers who are eligible for a below-threshold refund for the last tax year.

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It also introduced a new, simpler, digital service to allow customers to request a below-threshold refund using their online account in May 2024.

Since May, ?61.6 million has been successfully refunded to 248,000 customers, in the below-threshold refund scenario, as a result of the new refund service.

Steven Darling, customer experience director at SLC, said: ¡°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.

¡°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.¡±

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The other reasons for repayment include being placed on the wrong repayment plan, making a repayment before the correct period begins, or continuing to repay after their balance has been cleared.

With the cost-of-living crisis still ongoing, Tom Allingham, from the website Save the Student, said there has arguably ¡°never been a better time¡± for?graduates to check if they are owed?money.

¡°Regardless of how you might have overpaid your student loan, if you believe you¡¯ve done so, it¡¯s usually worth claiming a refund,¡± he said. ¡°Many are still feeling the squeeze of the cost of living crisis, and?reclaiming a few hundred pounds could be a welcome boost.¡±

patrick.jack@timeshighereducation.com