Graduate Recovers £120 in Student Loan Overpayment, Encourages Widespread Action
Bridie Pearson-Jones, a 31-year-old graduate, has successfully reclaimed £120 from an overpayment on her student loan and is now urging others to scrutinise their accounts. She discovered her outstanding balance had ballooned to £51,000, driven by escalating interest rates that increased her debt by £4,313 since graduation.
Mis-Selling Concerns and Financial Strain
Pearson-Jones borrowed £47,100 in 2013 to fund her degree at Southampton University and a Masters at City University. She expressed frustration, stating, “I feel completely and utterly mis-sold. At 17, I was told this wasn’t a ‘real’ debt – it was an investment in my future.” She fears the debt will persist into her 50s unless she wins the lottery, highlighting the ongoing student loan crisis across England.
Pathways to Financial Relief
Personal finance experts outline strategies to mitigate student loan burdens. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, recommends salary sacrifice, which lowers official salary and potentially reduces loan repayments. Additionally, student loan refunds offer direct recourse for overpayments.
According to Student Loans Company data, over a million graduates overpaid on their loans in the 2024/25 period. Pearson-Jones secured her £120 refund after changing jobs, describing the process as “incredibly easy.” She advised, “If the system is going to keep moving the goalposts, you have to claw back every penny you can.”
Political Responses and Proposed Reforms
Shadow education secretary Laura Trott advocates for capping loan interest rates to not exceed RPI inflation, a measure that could alleviate debt for millions of post-2013 graduates. She proposes funding this change by eliminating university courses deemed lacking in “value for money” for students.
This situation underscores the importance for graduates to regularly review their loan statements and explore available refund options, as many may be unknowingly eligible for reimbursements.
