Martin Lewis explains 'dead simple' refund claimed by more than one million people

has explained how more than one million people have reclaimed money back in overpaid repayments.

The MoneySavingExpert.com founder issued an urgent call-to-action during his Martin Lewis Money Show Live broadcast on this evening. He explained the four scenarios which could mean you've overpaid and are due money back.

The most common reason for an overpayment, is when someone has started repaying their student loan despite still being under the earnings threshold. Martin explained how this is common with people whose earnings fluctuate each month, or who work on commission. This may have also happened to you if you didn't work for several months.

The threshold for when you start to repay your student loan depends on what type of plan you’re on - but as an example, those on a Plan 2 loan only repay when their yearly income is over £27,295 a year, but for someone on a Plan 5 loan, the threshold is £25,000 a year.

Martin said: "Over a million people are in that position - and you can get the money back... The average payout on student loan claims is £280. This is very big and very easy to do, and it's worth taking notes." To get this money back, you need to sign into your Student Loans Company account and there is now an online form you can fill out.

A nurse called Rebecca shared her success story, with presenter Jeanette Kwakye reading out the following message: "I'm a nurse who overpaid my student loan, and as a result of working overtime due to COVID pressures, I got £444 [back]."

You may have also overpaid if you were placed on the wrong student loan payment plan. Martin explained how employers are told to place you on Plan 1 as default - and this has a much lower repayment threshold than most other plans. This means some people on lower salaries would have started to repay their student loan when they needn’t have.

Martin said: "So what do you do? In that case, dead simple, talk to your employer and tell them what plan you're on, and then you call up the student loan company and ask for a refund."

Martin also explained how some people could be owed money back if they started to repay their student loan too early. You're usually only eligible to start repaying in the April after you left your course. Some graduates may also have had money deducted after the loan was fully repaid, Martin warned.

He said: "If your company doesn't know when you graduated, it could take the money too early, and therefore you're paying when you shield, and again, that means you can reclaim. Just call the Student Loans Company payroll details will help you."