PARLIAMENTARY WRITTEN QUESTION
(12 March 2026)

To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of the Plan 2 student loan system on graduates whose repayments do not cover the interest added to their balance.

Asked by:
Alex Brewer (Liberal Democrat)

Plan 2 student loans were designed and implemented by previous governments and students in England starting degrees under this government have different arrangements.

Plan 2 loans interest rates are applied at the Retail Price Index (RPI) only, then variable up to RPI +3% depending on earnings. Interest rates do not impact monthly repayments made by student loan borrowers, which stay at a constant rate of 9% above an earnings threshold to protect lower earners.

Any outstanding loan and interest written off at the end of the loan term, and debt is never passed on to family members or descendants.

Answered by:
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