Martin Lewis says student loan error means 100,000 are owed cash back

Martin Lewis believes around 100,000 people have repaid more than what they need to on their student loans.

The MoneySavingExpert founder says you can get this cash back – but shouldn't hang around.

What's more, getting the over-payments returned to you won't make a bit of difference to what you pay going forward.

Mirror Online report that Martin suggests a lot of people across the UK need to know they can apply to get the money back in their accounts.

He said: "The only people who may not want to overpay are very higher earners (the top 17% of graduates) who will be likely to clear the loan within the 30 years.

"If in doubt though, and you need the cash (to pay off other debt or a mortgage, for example), reclaim your overpayments.”

The cash is owed because of the way student loan repayments work.

People who started university before 2012 are on the older "plan 1" loans, while people who started after that date are on "plan 2".

The problem is that many firms have put people on the "plan 1" repayment schedule by mistake – and that takes a far bigger chunk of your earnings each month.

The good news is that if you've been affected, Martin says you can get the money back.

"It’s understandable that many would think overpaying a good thing as it reduces the interest," he adds.

"But for most people overpaying will simply mean paying more unnecessarily, as the amount you pay will just be fixed over 30 years as a set proportion of income.

"Therefore, taking the overpayment back won't result in you paying any more in future, so it is a pure gain – do it."

Martin comes in very handy at this time of year and has plenty of good advice when it comes to the festive period.

The finance guru has offered his top tip to what avoid buying – or asking for at Christmas.

Martin has issued a stern warning about gift cards for loved ones.

He said: "The biggest answer I can give you and anyone else is, and I've said this many times before but never has it been more pertinent – I am extremely anti gift cards.

"The simple fact is that first of all some of them date – so someone buys them for you and if you don't use them in two years they are not worth it.

"But more importantly, if the company goes bust they are worthless."

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