Explore historical and projected student loan thresholds and interest rates across all plans. Understand how changes over time have affected repayments and plan for the future.
| Tax Year | Plan 2 Nominal |
|---|---|
2025/26 Projected | £28,470 +4.3% Impact: £588 |
2024/25 | £27,295 +0.0% Impact: £693 |
2023/24 | £27,295 +0.0% Frozen Impact: £693 |
2022/23 | £27,295 +0.0% Frozen Impact: £693 |
2021/22 | £27,295 +2.7% Impact: £693 |
2020/21 | £26,575 Impact: £758 |
Impact calculation: Annual repayment for £35,000 salary
| Tax Year | RPI Rate | Plan 2 |
|---|---|---|
| 2025/26 | 460.0% | 730.0% RPI to RPI+3% |
| 2024/25 | 460.0% | 730.0% RPI to RPI+3% |
| 2023/24 | 690.0% | 730.0% RPI to RPI+3% |
| 2022/23 | 440.0% | 690.0% RPI to RPI+3% |
| 2021/22 | 150.0% | 450.0% RPI to RPI+3% |
| 2020/21 | 110.0% | 410.0% RPI to RPI+3% |
Plan 1 and 2 thresholds were frozen 2022-2024, significantly increasing repayment burden as salaries rose with inflation.
Plan 5 introduced fixed £25k threshold but 40-year write-off. Lower interest rates but longer repayment period.
Plan 4 consistently offers the highest thresholds, making Scottish students better off in repayment terms.
Interest rates fluctuated dramatically 2020-2024, from historic lows near 1% to peaks over 7% affecting loan balances.
When adjusted for inflation, threshold freezes represented significant real-terms cuts, increasing repayment burden substantially.
Frequent policy changes make long-term planning difficult. Future threshold increases are promised but not guaranteed.
Official Sources: All threshold and interest rate data sourced from HM Treasury announcements, Student Loans Company publications, and Department for Education policy documents.
Inflation Adjustment: Uses official ONS Consumer Price Index (CPI) data for real-terms calculations. Base year can be adjusted to show relative purchasing power.
Projected Data: Future rates marked as "projected" are based on government announcements and may be subject to change in future budget announcements.
Calculation Notes: Impact calculations assume consistent salary throughout tax year. Actual repayments may vary due to PAYE timing, multiple employments, and other factors.