Students: Loans
Commons · Question 111755 · Tabled 9 Feb 2026 · Department for Education · Official record
Answered 16 Feb 2026
Question
Asked by Rosena Allin-Khan
To ask the Secretary of State for Education, pursuant to her Department's answer to 108730, what assessment she has made of the potential merits of reducing the constant rate of student loan repayments from 9% to 5%.
Answer
Answered by Josh MacAlister, 16 Feb 2026
Plan 2 student 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 o...