US EditionTories pledge to cut ‘unfair’ interest on student loans
Conservative leader Kemi Badenoch vows to limit Plan 2 student loan interest to 3.8% RPI, affecting 5.8 million borrowers and easing repayment burdens under the current system.
- On Sunday, Conservative leader Kemi Badenoch pledged to cap Plan 2 student loan interest at RPI only, writing in the Sunday Telegraph that the loans `increasingly feel like a scam` and she is `horrified` at graduates' situation.
- Data show Plan 2 uses an RPI-plus formula, introduced in 2012 by the Conservative-Liberal Democrat coalition amid tuition rises to up to £2,023, with interest up to 3%.
- An estimated 5.8 borrowers took out Plan 2 loans, with repayments starting above £28,470 at roughly 9% and deducted via the UK tax system.
- The UK government announced the Plan 2 repayment threshold will be frozen at £29,385 from April, 2027, amid criticism from Labour's Lucy Powell and the Liberal Democrats, while the government defends it as fair and reasonable.
- Earlier this month, Ms Reeves said the Government can cut repayments by bringing down inflation, adding that student loan interest fees will decrease as inflation drops.
7 Articles
7 Articles
The Independent
The Independent (US)Kemi Badenoch pledges to cut interest paid on student loans
The Tories have promised to limit the rate on Plan B loans
Tories’ Student Loan Shift Sparks Economic Growth Hopes
The Conservative Party’s recent pledge to reduce the interest rates on student loans issued up until 2023 signals a significant shift in the political landscape, one that could have far-reaching implications for both the economy and the investment community. By capping the interest on Plan 2 loans at the Retail Prices Index (RPI) instead of the current RPI plus up to three percent… Source
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The Star KenyaTories vow to lower interest on some student loans
Tories vow to lower interest on some student loans Conservative leader Kemi Badenoch has said her party would cut the rate of interest charged on some student loans issued in the decade up to 2023. Writing in the Sunday Telegraph, Badenoch said the Plan 2 loans from that period "increasingly feel…
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