Plan 5 repayment holiday ends

Paragraph (2BA) of the Education (Student Loans) (Repayment) Regulations 2009, which exempted plan 5 borrowers from repaying their loans on or before 5 April 2026, is omitted on 6 April 2026¹. The provision states: "(2BB) Omit paragraph (2BA) and this paragraph on 6th April 2026."¹

The regulations were made on 1 March 2009 and laid before Parliament on 12th March 2009, coming into force on 6 April 2009¹. They were made by the Secretary of State for Innovation, Universities and Skills, with the Welsh Ministers exercising powers in relation to Wales, 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.

The regulations extend to England and Wales only, subject to exceptions: regulation 80(3) extends to Northern Ireland, and the regulations extend to all of the United Kingdom so far as they impose obligations or confer powers on HMRC, an employer or a borrower in relation to repayments under Parts 3 or 4, or on any other person in relation to the retention or production of information or records¹.

A "repayment threshold year" is defined in the regulations as the period from 6 April to 5 April of the following year¹. An "academic year" means the period from 1 September in any year to 31 August of the following year, regardless of whether this is the period over which a borrower's course runs¹.

The regulations define a "plan 1 loan" as a loan taken out by a person in respect of a course the person begins on or before 31st August 2012, or a course the person begins during the period beginning on 1st September 2012 and ending at the close of 31st July 2023¹. Plan 5 loans are defined by reference to regulation 3E¹.

Other amendments to the regulations are recorded with different commencement dates. Words in regulation 13(2) were substituted on 1 April 2026 by the Finance Act 2026 (c. 11)¹. Words in regulation 9(2)(b) were inserted on 1 February 2026 by The Education (Scotland) Act 2025 (Consequential Provisions and Modifications) Order 2025 (S.I. 2025/1350)¹. Regulations 3A to 3E were inserted on 6 April 2023 by The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/1335)¹. Further amendments, including words in regulation 15(1), are inserted on 1 September 2026 by The Education (Student Loans) (Repayment) (Amendments for Lifelong Learning) Regulations 2026 (S.I. 2026/857)¹.

The regulations also define the "standard interest rate" in relation to a loan as the greater of zero or the percentage increase in the retail price index between the two Marches immediately before the commencement of the academic year in which the loan bears interest¹. The "retail price index" means the RPI All Items Index published by the Office for National Statistics¹.

Why it matters for households

Plan 5 borrowers who were exempt from repaying their loans on or before 5 April 2026 are no longer covered by that exemption from 6 April 2026¹. The change takes effect at the start of the repayment threshold year, which runs from 6 April to 5 April¹.

The regulations apply across the United Kingdom in certain respects, including obligations or powers on HMRC, employers or borrowers in relation to repayments under Parts 3 or 4¹. The main extent of the regulations is England and Wales, with regulation 80(3) extending to Northern Ireland¹.

The regulations sit alongside other provisions on student loans, including the definitions of plan 1 to plan 5 loans and the standard interest rate¹.

What happens next

The omission of paragraph (2BA) takes effect on 6 April 2026¹. Further amendments to the regulations, including words in regulation 15(1), are inserted on 1 September 2026 by The Education (Student Loans) (Repayment) (Amendments for Lifelong Learning) Regulations 2026 (S.I. 2026/857)¹.