Plan 1 to 5 loan definitions inserted by 2022 Amendment Regulations

Definitions of plan 1 to plan 5 loans were inserted into the Education (Student Loans) (Repayment) Regulations 2009 with effect from 6 April 2023, by The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/1335)¹. The insertion is recorded in the amendment notes to the 2009 Regulations, which were made on 1 March 2009¹.

The 2009 Regulations now define "plan 1 loan", "plan 2 loan", "plan 3 loan", "plan 4 loan" and "plan 5 loan" by reference to regulations 3A to 3E, and define "student loan" as any of the five¹. The same instrument inserted words into regulation 9(1) with effect from 6 April 2023¹. The regulations also set out which body is "the Authority" for each plan: the Welsh Ministers or the Secretary of State for plan 1, 2 or 3 loans, the Scottish Ministers or a person exercising functions under section 73A(3) of the Education (Scotland) Act 1980 for plan 4 loans, and the Secretary of State for plan 5 loans¹.

A plan 1 loan is defined as a loan taken out by a person in respect of a course the person begins on or before 31 August 2012, among other cases¹. The regulations define "academic year" as 1 September to 31 August, "repayment threshold year" as 6 April to 5 April, and "standard interest rate" as the greater of zero or the percentage increase in the retail price index between the two Marches immediately before the start of the academic year in which the loan bears interest¹.

The 2009 Regulations extend to England and Wales only, except regulation 80(3), which extends to Northern Ireland, and except so far as they impose obligations or confer powers on HMRC, an employer or a borrower in relation to repayments under Parts 3 or 4¹. They were made under sections 22 and 42 of the Teaching and Higher Education Act 1998, sections 5 and 6 of the Sale of Student Loans Act 2008, and sections 73(f) and 73B of the Education (Scotland) Act 1980¹.

Why it matters for households

The definitions determine which repayment plan a borrower's loan falls under, and the plan in turn determines the repayment threshold and interest arrangements that apply. The regulations also identify which authority administers each plan, so the body a borrower deals with depends on whether the loan is a plan 1, 2, 3, 4 or 5 loan¹. The definitions took effect from 6 April 2023, at the start of the 2023/24 repayment threshold year, which runs from 6 April to 5 April¹.

What happens next

The amendment notes record further changes with later dates. Words in regulation 9(2)(b) were inserted with effect from 1 February 2026 by The Education (Scotland) Act 2025 (Consequential Provisions and Modifications) Order 2025 (S.I. 2025/1350), and words in regulation 13(2) were substituted with effect from 1 April 2026 by the Finance Act 2026¹. Paragraph (2BB) provides for paragraph (2BA) to be omitted on 6 April 2026¹. Regulations 3A to 3E are also recorded as inserted with effect from 1 September 2026 by The Education (Student Loans) (Repayment) (Amendments for Lifelong Learning) Regulations 2026 (S.I. 2026/857), which likewise inserts words into regulation 15(1)¹. The regulations define a "plan 5 LLE loan" and a "plan 5 non-LLE loan" by reference to regulation 3E¹.