The Department for Education confirmed on 26 November 2025 the annual updates to repayment thresholds for Plan 2 and Plan 3 Income Contingent Student Loans, which take effect from April 20261.
For Plan 2 loans, taken out by undergraduates between 2012 and 2023, the income threshold and the lower interest rate threshold for repayment from April 2026 is £29,3851. The higher interest threshold for Plan 2 loans from the same date is £52,8851.
For Plan 3 loans, which cover Postgraduate Masters and Doctoral Loans, the income threshold for repayment from April 2026 is £21,0001.
The announcement was published by the Student Loans Company on GOV.UK1.
"The Department for Education today (26 November 2025) confirmed annual updates to repayment thresholds for Plan 2 and Plan 3 Income Contingent Student Loans."
| Loan plan | Threshold from April 2026 |
|---|---|
| Plan 2 (2012 to 2023 undergraduate loans), income and lower interest rate threshold | £29,385 |
| Plan 2, higher interest threshold | £52,885 |
| Plan 3 (Postgraduate Masters and Doctoral Loans), income threshold | £21,000 |
The announcement does not state the thresholds that applied before April 2026, so the size of any change has not been reported1. It also does not set out the repayment rate applied above the threshold, or the interest rates themselves, beyond naming the lower and higher interest thresholds for Plan 21.
Why it matters for households
The thresholds determine the income level at which borrowers on these plans start repaying, and, for Plan 2, the points at which the interest rate applied to the balance changes1. Borrowers whose income sits below the relevant threshold do not make repayments through the income contingent system, and those above it repay a percentage of earnings over the threshold. The figures confirmed on 26 November 2025 apply from April 2026, which is when the tax year and the repayment position for the year ahead begin1.
The practical effect falls on people repaying Plan 2 undergraduate loans and Plan 3 postgraduate loans, whose repayment position for the year beginning April 2026 will be set against these figures1. Because the announcement covers thresholds only, it does not by itself change the rate at which repayments are deducted, and no change to that rate is reported1. Repayments are collected through PAYE and Self Assessment, so the threshold feeds into how employers and HMRC treat earnings above it.
What happens next
The new thresholds take effect from April 20261. The announcement does not set out any further dates, and no statement on thresholds for later years has been reported1.
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