Overview
- From 6 April, the annual earnings threshold for Plan 2 UK borrowers in Germany will be cut to £23,510 from £28,470, raising monthly repayments at the 9% rate above the new level, with similar changes reported for other EU countries.
- In England, the government has confirmed a three-year freeze of the Plan 2 repayment threshold at £29,395 starting April 2027, meaning more will repay sooner and pay more as wages rise.
- Northern Ireland’s economy minister said the English threshold freeze will not apply there, with the local threshold set to rise with inflation to £26,900 in April 2026.
- House of Commons Library figures show more than £15bn of interest was added to England’s student loans in 2024–25 versus roughly £5bn repaid, with outstanding debt reported at £267bn and the average 2024 graduate owing about £53,000.
- Campaigners and former ministers criticized high charges on older Plan 2 loans—often RPI plus up to 3%—and more than 170,000 former students continue legal claims over teaching lost to strikes and the pandemic.