Welsh graduates hit by student loan threshold freeze at £29,385
The Welsh government has frozen the Plan 2 student loan repayment threshold at £29,385 between 2027 and 2030, forcing graduates to begin repayments earlier.
The Welsh government announced on Wednesday that the income threshold at which university graduates start repaying Plan 2 student loans will be frozen at £29,385 between 2027 and 2030. The limit will not rise with inflation, matching a controversial policy previously enacted in England.
The freeze means graduates will start repaying earlier than anticipated as inflation pushes salaries past the fixed threshold. NUS Cymru president Jennifer Taylor criticised the decision, arguing that commercial banks could not alter terms retrospectively. Financial expert Martin Lewis had previously expressed similar concerns over English borrowers.
Deputy Minister for Skills and Tertiary Education Cefin Campbell called the policy unavoidable, explaining that HMRC and the Student Loans Company operate a shared system unable to manage separate thresholds. Campbell also confirmed that ministers are reviewing whether to raise Welsh tuition fees above £9,790.
Source: BBC News