Revealed: Over 100,000 overpaid scholar loans prior to now yr as a result of they have been on the WRONG cost plan – methods to reclaim them
How to check if you are overpaying with your current employer
The easy way to check if you are overpaying is to ask your employer what plan you have. If you are not sure which plan to follow, log into your SLC account and check if it matches. You can also find out by calculating the amount of deductions on your payroll.
MoneySavingExpert.com founder Martin Lewis explains, "If you are from England or Wales and started university in or after 2012, you should get a Plan 2 loan. That means if your takeaway salary is below 2,214 GBP per month is (which is £ 26,575 a year salary) You shouldn't have any deductions If you do there is a problem.
"If your salary is higher, ask your employer what plan you have. If not, there is a way to do some math on your paycheck to find out.
“Subtract £ 2,214 from your gross monthly salary (before tax) and then calculate 9% of the answer (which you do by multiplying it by 0.09). This should give you a rough idea of what to pay for your student loan. If you find it's a lot more then you probably have the wrong plan. "
How to check if you've paid too much with previous employers
The first thing to do is to contact your old employer to see if they can tell you the plan they registered you for. You can then dig up old pay slips or old P60s to look for student loan deductions and try doing the math yourself as outlined above to see if it matches.
Another option is to contact the SLC directly. However, he can only tell you what payment plan you had until March 2019 when the digital data exchange with HM Revenue & Customs (HMRC) began. Before that date, the SLC will indicate that your HMRC-tracked credit schedule is unknown. However, you can log into your online account to view annual financial statements and payments prior to March 2019.
Alternatively, go straight to the HMRC. It said it can walk you through the calculation by using student loan deduction information stored in its systems to help determine which plan your employer was using.