Charlotte Fisher

The Department for Education has announced student-loan changes taking effect from September 2026. The Plan 1 repayment threshold will rise from £26,900 to £28,005 for the 2027–28 period, while Plan 1 interest will be capped at 4.1%. Plan 2 borrowers will face rates between 4.1% and 6%, Plan 3 interest will fall to 6%, and Plan 5 interest will rise to 4.1%. Borrowers only make compulsory repayments above their applicable earnings threshold, and those earning below £44,311 may be eligible to defer mortgage-style loan repayments.