Student Loan Reform Campaign

Get involved in the campaign to reform student loans

Graduates who took out a Plan 2 student loan between 2012 and 2022 are set to face higher repayments under new Government plans, unless this policy is challenged. 

The Government has confirmed that while the repayment threshold will rise slightly to £29,385 in April 2026, it will then be frozen from April 2027 to 2030. 

In practice, this means that as wages increase with inflation, a greater proportion of graduates’ income will fall above the frozen threshold and be subject to the 9% repayment rate. Over time, this functions as a stealth tax. 

At the same time, interest continues to accumulate on outstanding balances, often at rates that mean many graduates will never fully repay their loans. For low- and middle-income earners already managing rising rents and living costs, this change will add further financial pressure. 

Oxford SU recognises that this issue could impact current postgraduate students and those on courses lasting four years or more. If unchallenged, the freeze risks setting a precedent for further retrospective changes to student loan terms, impacting both current and future students. 

What’s Oxford SU doing about this as your representative body? 

As the representative body for students, Oxford SU is raising concerns about the repayment threshold freeze at both national and parliamentary level. 

On 11 March, we will attend a National Lobby Day in Westminster alongside Students’ Unions from across the country. We will meet MPs directly to argue for a fairer approach to student loan repayments. 

We will also represent students’ concerns at the All-Party Parliamentary Group for Students, focusing on student loan interest rates, advocating for the reforms you want to see. 

How you can support the campaign 

Alongside national lobbying, you can take action to support our efforts for change. 

1. Sign the NUS UK petition, “Don’t Freeze Our Futures.” 

The petition calls on the Chancellor to: 

• Reverse the repayment threshold freeze 

• Reform interest rates so debts do not grow faster than repayments 

• Introduce fairer repayment terms that do not penalise lower- and middle-income earners 

Sign the NUS petition 

2. Contact your local MP

Find your local MP

Template to contact your MP 

[YOUR FULL NAME] [YOUR FULL ADDRESS] [YOUR POSTCODE] [YOUR EMAIL / PHONE] 

[DATE] 

[MP'S NAME] MP House of Commons London SW1A 0AA 

Dear [Mr/Ms/Mrs MP SURNAME], 

Re: Plan 2 Student Loan repayment threshold freeze - concerns for graduates 

I am writing to you as your constituent in [INSERT CONSTITUENCY NAME] to express my concern regarding the current repayment system for Plan 2 student loans 

While the repayment threshold is set to rise slightly to £29,385 in April 2026, the confirmation that it will subsequently be frozen from April 2027 until 2030 acts effectively as a rise in stealth tax. 

As wages rise with inflation, this freeze means a significantly higher proportion of a graduate’s income will be subject to the 9% repayment levy. This comes at a time when we are already facing: 

• Ballooning debt from interest rates: students’ debt is growing faster than many can repay it. This transforms the loan from a debt that can be cleared into a punitive, lifelong graduate tax. 

• Double taxation: this freeze coincides with the freeze on income tax thresholds until 2031. Graduates are essentially being hit by a "double drag" - paying more income tax and more student loan repayments simultaneously, leaving us with less disposable income than previous generations. 

• Changed repayment thresholds: the original terms of Plan 2 loans implied that thresholds would rise with average earnings. By freezing the threshold, the government has altered the terms of the contract retrospectively. 

As my representative in Parliament, I urge you to raise this issue with the Chancellor and question the proposed changes to the Plan 2 student loan repayment scheme. 

I look forward to hearing your views on this matter and what steps you intend to take to support graduates in our constituency. 

Yours sincerely, 

[YOUR SIGNATURE] 

We will continue to update you as this campaign progresses. We encourage you to take part in local action while we continue lobbying nationally for a fairer student finance system. 

-  Oxford SU Presidents