The findings indicate that every year, over 50,000 graduates automatically pay money (an average sum of £570) they do not owe to the SLC, due to ‘antiquated’ collection processes.

Currently, loan repayments are deducted from a graduate’s salary at source, in line with their salary; employers collaborate with HMRC to ensure the appropriate amount is paid, and HMRC in turn remunerate the SLC. However, while employers are legally obligated to update HMRC on changes in a person’s salary immediately, HMRC only update their own records once annually. This means that the Treasury can garner unnecessary additional payments when information contained in their records isn’t accurate.

Between April 2012 and April 2013, over 70,000 graduates overpaid (an increase of 3,000 on 2011/12) – in total, £167m was accrued due to overpayments between 2008 and 2013.

As a result of the exposure, HMRC has pledged to enter a consultation with the SLC, and establish a more effective and accurate system of recordkeeping.

“It is too early to provide more details at this stage,” said an HMRC spokesperson, “but if a student loan borrower believes that they should not be making any further repayments on their loan, they can contact the Student Loans Company, which will issue any refunds due with interest.”

Commenting, George Bull of Baker Tilly said the revelations were “nothing short of a scandal.”

“Very little has been done to address this cosy arrangement. Such antiquated processes should not be allowed to persist in this day and age. One wonders how many of those affected have further suffered from overdraft charges, or had to take on additional credit to make ends meet.”

As noted by the HMRC spokesperson, those who have overpaid needn’t fret. All one need do is contact the SLC (0300 1000 0611), and request a refund. A refund will be issued once total earnings and student loan repayments have been confirmed at the conclusion of the tax year, on 5 April. The findings indicate that graduates who have already fully paid off their loan, or have suffered a pay cut recently, are most likely to be impacted by this anomaly; if either of these circumstances are applicable to you, check your payslips. You are paying the correct amount if you are charged 9 per cent on any salary earned above £16,910 annually.