Students: Loans
The question
To ask the Secretary of State for Education, pursuant to the answer of 2 June 2026 to question 2901 titled Students: Loans, whether she has made an assessment on the potential merits of bringing the Plan 2 repayment threshold in line with today’s RPI inflation, in the context that the initial repayment threshold was £21,000 in 2012.
Answered by Josh MacAlister
Plan 2 student loans were first made available to undergraduate students in 2012. These loans did not enter repayment until 2016, at which point the £21,000 repayment threshold was applied to Plan 2 loans.
Since this government has been in power, we have increased the repayment threshold for Plan 2 loans to £28,470 in April 2025, its first increase since 2021, and we increased it again on 6 April this year to £29,385.
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