The Education (Student Loans) (Repayment) (Amendment) (No. 2) Regulations 2026

The regulations state that the repayment threshold for Plan 2 loans will be maintained at £29,385 for the three years ending 5 April 2030.

The document specifies that the higher interest threshold—the level above which interest is charged at the Retail Price Index (RPI) plus 3%—will remain at £52,885 for the same period.

The explanatory note indicates that no significant impact is foreseen on the private, voluntary, or public sectors.

Proponents in the Welsh Government conducted a Regulatory Impact Assessment to evaluate the costs and benefits of compliance within Wales.

Student advocacy groups have historically argued that freezing repayment thresholds during periods of wage growth effectively increases the real-term cost of loan repayments for graduates.

Critics may note that the document does not provide a specific justification for the choice of these figures or the duration of the freeze beyond the three-year window.

Policy analysts have observed that maintaining a fixed threshold rather than an inflation-linked one can result in 'fiscal drag,' where more borrowers are brought into the repayment bracket or pay a higher proportion of their income.

The document acknowledges that a full impact assessment was not produced for the English jurisdiction, which some stakeholders may view as an omission regarding the long-term financial effect on borrowers.