February 08: UK Student Loan Freeze; Voluntary Repayments Treble

Student loans are back in focus for UK investors. Voluntary repayments on England’s Plan 2 loans more than trebled to £491.1m between FY2017 and FY2025, as high interest charges hit balances. The government plans to freeze the Plan 2 repayment threshold at £29,385 for three years from April 2027. Heavier deductions from graduate pay can slow discretionary spending and affect mortgage affordability. We explain what these shifts mean for cash flow, listed lenders, consumer-facing sectors, and portfolio positioning in Britain.