Cap student loan interest rates at a fair and affordable level

Background

Reduce or cap interest rates on UK student loans so that repayments are fair, affordable, and allow graduates to meaningfully reduce their debt.

Additional details

UK student loan interest rates significantly exceed inflation and continue to grow even when graduates earn modest incomes. As a result, many borrowers see their debt increase despite making regular repayments. We believe the current system discourages social mobility, places long-term financial strain on graduates, and disproportionately affects lower and middle earners. The Government should reduce, cap, or reform student loan interest rates so that repayments genuinely reduce debt.