Select committee: Treasury Committee
Conclusion 10
1st Report – Student loans: Broken and unfair?
Published 7 Jul 2026
Addressed to HM Treasury
Treasury Committee Student loans and taxation of graduates All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
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)
From: Treasury Committee, 1st Report – Student loans: Broken and unfair? (HC 14), 7 July 2026
Government response
The government responded to the whole report on 13 September 2026 (deadline 7 September 2026).