Written Question·Department for Education·UIN 112715

Students: Loans

Tabled: 11 February 2026
Answered: 24 February 2026

Question

Dr Peter Prinsley

LabourBury St Edmunds and Stowmarket

To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of Plan 2 student loan interest rates on graduates’ outstanding loan balances over time; and whether these rates will be reviewed as part of futur

Answer

Josh MacAlister
Plan 2 loans were designed and implemented by previous governments.Interest rates are applied at the Retail Price Index (RPI) only, then variable up to an upper limit of RPI +3% depending on earnings.This maintains the real value of repayments over a long...

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