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The Guardian - UK
The Guardian - UK
Business
Rowena Mason and Sally Weale

UK government caps student loan interest rates at 6% from September

Students sitting at tables eating in an internal courtyard of a modern building
Students with plan 2 and 3 loans currently pay interest rates based broadly on RPI plus 3%. Photograph: View Pictures/Universal Images Group/Getty Images

Millions of graduates will have the interest on their student loans capped at 6% from September as a temporary measure to protect them from the risk of rising inflation driven by war in the Middle East.

Ministers acted after months of criticism over the loans becoming a “debt trap” that often leave graduates in England and Wales paying tens of thousands more than the original loan amount.

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