Scrap RPI +3% interest on plan 2 & postgrad student loans & charge RPI only

Background

I am concerned about the interest rate that is charged on Plan 2 and Postgraduate student loans. These are much higher than other student loan plans. We urge the Government to only charge interest at RPI on plan 2 and postgraduate student loan repayments

Additional details

The current rate of interest on these loans is often higher than most mortgages and young people may be unable to pay both. I am concerned motivation to earn may be lost as some mid-high earners may end up paying a high marginal tax rate plus NI until they retire. I am also concerned that women may be adversely affected as interest still accrues while on parental leave, which could potentially be contributing to the already low birth rate.

Where it’s popular

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