Source · Select Committees · Treasury Committee
Recommendation 10
10
The government’s current 6% cap on student loan interest is a step in the right...
Conclusion
The government’s current 6% cap on student loan interest is a step in the right direction for protecting Plan 2 loan holders. However, capping the rate at 6% rather than allowing it rise to 7.1% as implied by March’s RPI rate will benefit only students who will pay back their loan in full. It will have no impact on the majority of students because the majority have their loan written off before they finish paying it off. (Conclusion, Paragraph 44)
Government Response
A response document is linked to this report, dated 13 September 2026. Response attribution to this conclusion has not been verified. Read the response document ↗