What are the new student loan repayment thresholds from April 2026?

From April 2026: Plan 1 threshold is £26,900 (up from £26,065), Plan 2 is £29,385 (up from £28,470), Plan 4 is £33,795 (up from £32,745), Plan 5 remains £25,000, and Postgraduate remains £21,000. This represents a 3.2% increase for Plans 1, 2, and 4. Source: HMRC Employer Bulletin December 2025.

How much are tuition fees increasing in 2026?

Tuition fees in England are increasing from £9,250 to £9,790 per year for the 2026-27 academic year onwards. This is a 2.71% increase and the first increase since 2017. For a 3-year degree, total tuition fees will be £29,370 (up from £27,750). This only affects students starting in September 2026 or later - current students' fees remain unchanged.

What is the Lifelong Learning Entitlement (LLE)?

The Lifelong Learning Entitlement (LLE) is a new flexible funding system launching in January 2027 that provides £38,140 (equivalent to 4 years of funding) across your lifetime for higher education and skills training. You can use it for modular study, take breaks between learning, and it's available from age 18 to 60. Applications open in September 2026. Repayment is under Plan 5 terms: £25,000 threshold, 40-year write-off period.

When does the LLE launch and how do I apply?

The Lifelong Learning Entitlement launches in January 2027, with applications opening in September 2026. You can use the LLE for approved higher education courses (Level 4-6) and it gives you £38,140 to use flexibly across your lifetime. Unlike traditional student loans, you can take individual modules rather than full degrees, and take breaks between learning periods.

How will the Plan 2 freeze affect my repayments?

If you're on Plan 2, your monthly repayments will decrease slightly from April 2026 due to the higher threshold (£29,385). However, because the threshold is frozen until April 2030, your repayments will gradually increase over 4 years as wages grow. For example, if you earn £30,000 in 2026, you'll pay £55/year. If your salary increases to £33,800 by 2030 (3% annual growth) but the threshold stays frozen, you'll pay £396/year - a significant increase.

Do the 2026 changes affect Plan 5 borrowers?

Plan 5 borrowers (students who started from August 2023) see minimal changes. The Plan 5 threshold remains at £25,000 for April 2026. The tuition fee increase to £9,790 only affects students starting in September 2026 or later - if you're already at university on Plan 5, your fees stay at £9,250. Plan 5 thresholds increase annually with average earnings, which typically grow faster than RPI inflation.

Should I make voluntary overpayments with the threshold freeze?

The Plan 2 threshold freeze doesn't automatically mean overpayments are worthwhile. Most Plan 2 borrowers (around 80%) won't repay their loans in full before the 30-year write-off. Overpayments only benefit you if you're likely to fully repay your loan. Consider your career trajectory, current loan balance, and earning potential. Use our calculator to model your specific situation before making overpayments - for many borrowers, overpaying means giving away money that would have been written off.

UK Student Loan Changes for 2026: Everything You Need to Know

Q: What is the Plan 2 threshold freeze until 2030?

The Plan 2 repayment threshold will be frozen at £29,385 from April 2026 until April 2030. This means it won't increase with inflation for 4 years. This affects students who started university between September 2012 and August 2023 in England and Wales. As wages typically grow faster than the frozen threshold, repayments will gradually increase in real terms during this period.

Q: What changes for care leavers in 2026?

From the 2026-27 academic year, care leavers will automatically receive the maximum maintenance loan entitlement regardless of household income. This removes financial barriers for students who were previously in care. To qualify, you must have been looked after by your local authority for at least 13 weeks after your 14th birthday, and were in care on or after your 16th birthday.

New thresholds, tuition fees, and the Lifelong Learning Entitlement explained

Published: January 5, 2026 | Updated: January 5, 2026

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Quick Summary

April 2026: Repayment thresholds increase by 3.2% for Plans 1, 2, and 4
Important: Plan 2 threshold will freeze at £29,385 until April 2030
2026-27 Academic Year: Tuition fees rise to £9,790 (first increase since 2017)
January 2027: Lifelong Learning Entitlement launches (applications open Sept 2026)
Care Leavers: Now automatically receive maximum maintenance entitlement

The UK government has announced several major changes to student loans for 2026. These changes affect both current borrowers and future students. This guide explains everything you need to know about the new thresholds, fees, and the introduction of the Lifelong Learning Entitlement.

Repayment Threshold Increases (April 2026)

From April 2026, repayment thresholds for most loan plans are increasing by 3.2%. This means you'll start repaying your loan at a slightly higher income level.

New Thresholds from April 2026

Loan Plan	2025/26	April 2026	Change
Plan 1	£26,065	£26,900	+£835
Plan 2	£28,470	£29,385	+£915
Plan 4	£32,745	£33,795	+£1,050
Plan 5	£25,000	£25,000	No change
Postgraduate	£21,000	£21,000	No change

Source: HMRC Employer Bulletin December 2025

What This Means

If you earn £30,000 on Plan 2, your annual repayment will decrease from £138 to £55 thanks to the higher threshold. That's £83 less per year, or about £7 less per month.

Example: On £35,000 salary with Plan 2, you'll pay £505 per year instead of £585 - saving £80 annually.

Plan 2 Threshold Freeze Until April 2030

Important Notice

The Plan 2 threshold will be frozen at £29,385 from April 2026 until April 2030. This means it won't increase with inflation for 4 years.

This freeze affects students who started university between September 2012 and August 2023 in England and Wales. During the freeze period, your repayments will gradually increase in real terms as wages typically rise faster than the threshold.

Who This Affects

English students who started between September 2012 - August 2023
Welsh students who started from September 2012 onwards
Anyone currently on Plan 2 for undergraduate loans

Impact Over Time

If wages grow by 3% per year during the freeze, someone earning £30,000 in 2026 would earn around £33,800 by 2030. Their student loan repayments would increase from £55/year to £396/year even though the threshold stays frozen.

Why Is This Happening?

The government says this freeze will help reduce the cost of student loans to taxpayers. Most Plan 2 borrowers don't repay their loans in full, so the freeze increases total repayments without changing interest rates.

Tuition Fee Increase to £9,790 (2026-27)

For the first time since 2017, tuition fees in England are increasing. From the 2026-27 academic year, universities can charge up to £9,790 per year for undergraduate degrees - a 2.71% increase from £9,250.

Fee Comparison

£9,250

2017-2025

Frozen for 8 years

£9,790

2026-27 onwards

+2.71% increase

Impact on Total Debt

3-year degree: Total tuition fees increase from £27,750 to £29,370 (+£1,620)

4-year degree: Total tuition fees increase from £37,000 to £39,160 (+£2,160)

Does This Affect Me?

Starting September 2026 or later: Yes, you'll pay £9,790 per year
Already at university: No, your fees stay at £9,250
Starting September 2025: No, you'll pay £9,250 for all years

Remember: Most graduates don't repay their loans in full. Higher tuition fees increase your debt, but only affect your actual repayments if you become a high earner who pays off the entire loan.

Lifelong Learning Entitlement (LLE)

New in 2027

A flexible way to fund higher education and skills training throughout your life - not just straight after school.

What Is the LLE?

The Lifelong Learning Entitlement is a new funding system that gives you £38,140 to use across your lifetime for higher education. That's equivalent to 4 years of full-time study, but you can use it flexibly.

Key Features

£38,140 Total

Equivalent to 4 years of funding across your lifetime

Modular Study

Take individual modules, not full degrees

Flexible Timing

Take breaks between learning periods

Plan 5 Repayment

£25,000 threshold, 40-year write-off

Who Can Use It?

Available from age 18 to 60 for tuition loans
No age limit for maintenance loans
Must be used for approved higher education courses (Level 4-6)
Can be used alongside apprenticeships or work

Important Dates

September 2026: Applications open
January 2027: LLE officially launches
From 2027: Can start using your entitlement

How Is It Different from Traditional Student Loans?

Feature	Traditional Loans	LLE
Course Structure	Full degrees only	Individual modules allowed
Study Pattern	Continuous study expected	Breaks allowed
Age Limit	Usually under 60	Up to 60 for tuition
Total Available	Based on course length	£38,140 lifetime cap

Maintenance Loans & Care Leaver Changes

Maintenance Loan Increase

Maintenance loans are increasing by 2.71% for the 2026-27 academic year. This matches the tuition fee increase and helps cover rising living costs.

Care Leavers - Important Change

From 2026-27, care leavers will automatically receive the maximum maintenance loan entitlement - regardless of household income.

This removes financial barriers for students who were previously in care and ensures they get the support they need.

Who Qualifies as a Care Leaver?

You're considered a care leaver if you were looked after by your local authority for at least 13 weeks after your 14th birthday, and were in care on or after your 16th birthday.

DSA Remains Frozen

The Disabled Students' Allowance (DSA) maximum remains at £27,783 per year. This covers specialist equipment, support workers, and other disability-related study costs.

What This Means For You

If You're Currently Repaying Plan 2

Your monthly repayments will decrease slightly from April 2026
The threshold freeze means your repayments will gradually increase over 4 years
Use our calculator to see your exact repayment changes
Consider whether voluntary overpayments make sense for your situation

If You're on Plan 5

Your threshold stays at £25,000 - no change
Tuition fee increase doesn't affect you if you started before 2026
Your threshold increases with average earnings (typically faster than RPI)
40-year repayment period unchanged

If You're Starting University in 2026 or Later

Tuition fees are £9,790 per year (up from £9,250)
Maintenance loans have increased by 2.71%
You'll be on Plan 5 (£25,000 threshold, 40-year write-off)
Consider whether the LLE might suit your needs better
Care leavers automatically get maximum maintenance

If You're Considering the LLE

Perfect if you want flexible, modular study
Good for career changers or those upskilling
Same repayment terms as Plan 5 (£25,000 threshold)
Applications open September 2026
Plan your learning journey before applying

Key Dates Timeline

April 2026

New Repayment Thresholds Take Effect

Plans 1, 2, and 4 increase. Plan 2 freeze begins.

Sept 2026

New Tuition Fees & LLE Applications Open

£9,790 fees start. LLE applications open for Jan 2027 start.

Jan 2027

Lifelong Learning Entitlement Launches

First LLE students can start flexible modular courses.

April 2030

Plan 2 Freeze Ends

Plan 2 threshold expected to resume increasing with inflation.

Calculate Your Repayments

See exactly how the 2026 changes affect your student loan repayments

Use Calculator Learn More About Thresholds

👩‍🎓

Dr. Lila Sharma

UK Education Policy Specialist

With over 15 years of experience in UK education policy and student finance, Dr. Sharma founded Student Loan Calculator UK to help students navigate the complex world of student loans.