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Tories pledge to cut ‘unfair’ interest on student loans

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.

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Sky News UK

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Great Yorkshire Radio

Center

The pressure is building on government to reform student loan repayments

Labour faces another backbench rebellion over the repayment threshold for student loans in England, which is being frozen for three years, meaning some workers will be dragged into making larger payments.

8 hours ago·United Kingdom

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The Canary

Left

Smirking Phillipson says gov won't fix Student Loan crisis

It seems Bridget Phillipson is relaxed about student loan problem; we can't say the same for millions of graduates getting taxed every month

9 hours ago·United Kingdom

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Channel 4

Lean Left

Tories pledge to cut interest on some student loans in England

The Conservatives have promised to cut the amount of interest paid on some student loans in England amid widespread concerns over costs.

9 hours ago·London, United Kingdom

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Evening Standard

Center

Government will ‘look at’ Plan 2 student loans, Education Secretary says

Education Secretary Bridget Phillipson warned that the Government was dealing with ‘a question of priorities’.

10 hours ago·London, United Kingdom

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Conservative Home

Lean Right

The Tories are to blame for the student loan system, Phillipson insists

“I want a fairer system for students and graduates” Education Secretary Bridget Phillipson says the government will “look at” how it can improve the student loan system but does not commit to reforms called for by opposition parties #BBCLauraK pic.twitter.com/A3jwJ9M0A9 — BBC Politics (@BBCPolitics) February 22, 2026 The post The Tories are to blame for the student loan system, Phillipson insists appeared first on Conservative Home.

12 hours ago

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