Align Plan 2 student loan interest rates with Plan 5 (RPI only).
We call on the government to remove the +3% 'real' interest rate from Plan 2 loans and cap interest at RPI, as is the case for students who started after 2023.
Signatures
159
signatures
Government response threshold (10,000) · 159/10,000
Debate threshold (100,000) · 159/100,000
- 10 MAR 2026Petition opened for signaturesCreated by Philip Wharton
Background
Plan 2 graduates are the only cohort charged interest above inflation, creating an unfair 'middle-earner trap' where balances grow despite regular repayments. Furthermore, the government has frozen the Plan 2 threshold at £29,385 until 2030. As wages rise with inflation, this acts as a stealth tax. We ask that the threshold also be adjusted annually in line with the Retail Price Index (RPI).