Minister says change for plan 2 and 3 loans in England and Wales will ‘protect borrowers’ from impact of global conflict
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The interest rate on plan 2 and plan 3 student loans will be capped at 6%, the Department for Education has announced.
Graduates with plan 2 loans currently pay interest rates based on the retail price index (RPI) measure of inflation, plus up to 3% based on their earnings. Current students on plan 2 and plan 3 loans attract an interest rate of RPI +3% while they are studying.
Plan 2 student loans cover those taken out for undergraduate courses and Postgraduate Certificates of Education (PGCE) since 1 September 2012 in Wales, and between 1 September 2012 and 31 July 2023 in England.
