Students: Loans
The question
To ask the Secretary of State for Education, what estimate her Department has made of the potential impact of the freeze to the repayment threshold from April 2027 on average annual repayments for Plan 2 student loan borrowers.
Answered by Josh MacAlister
It was announced at the Autumn Budget that the repayment and interest thresholds for Plan 2 student loans will be frozen from the 2026/27 financial year until April 2030, when they will increase annually by inflation.
The department has produced the attached analysis regarding the impact of freezing the repayment and interest thresholds.
If a borrower is earning above the repayment threshold and their income stays the same, then their repayments will remain the same. If a borrower is not earning above the repayment threshold and their income remains the same, they will continue to not be required to make any repayments.
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