Interest rates on student loans to be capped after mass anger over repayments

Interest rates on student loans to be capped after mass anger over repaymentsThis is a breaking news story. Follow us on Google News, Flipboard, Apple News, Twitter, Facebook or visit The Mirror homepage.Young adults in graduation gowns joyfully tossing caps into the sky, celebrating achievement and new beginnings against a clear backdropByLevi WinchesterMoney Editor10:36, 7 Apr 2026Updated10:57, 7 Apr 2026|commentsInterest rates on plan 2 and 3 student loans will be capped following widespread anger over graduates being stuck with ballooning debts. Under the current system, many students with plan 2 and 3 loans say their student loan debt is actually growing every year - despite them making regular repayments. For a plan 2 or plan 3 student loan, the interest rate is variable and is charged at the Retail Price Index (RPI) measure of inflation plus 3%. But in an update today, the Government announced interest rates will be capped at a maximum 6% from September 1 to help deliver "stability and protections for graduates" amid the possibility of inflation rising again due to the conflict in the Middle East. Get the best deals and tips from Mirror Money WHATSAPP GROUP: Get money news and top deals straight to your phone by joining our Money WhatsApp group here. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice. NEWSLETTER: Or sign up to the Mirror's Money newsletter here for all the best advice and shopping deals straight to your inbox. Minister for Skills, Jacqui Smith, said: "We know that the conflict in the Middle East is causing anxiety at home, and while the risk of global shocks is beyond our control, protecting people here is not. "Capping the maximum interest rate on Plan 2 and Plan 3 student loans will provide immediate protection for borrowers, supporting those w...