Petition · past parliament · Department for Education
Make Plan 2 Student Loans fair by capping the interest rate at 1.5%.
Closed
413 signatures
What the petition asks
Due to the radical interest rates applied, the interest accrued is drastically outpacing repayments leading to loans becoming a life-long tax. As the loan grows, graduates will continue to pay a basic tax rate (>£27,288) of 29% and a higher rate of 49% whilst making little to no impact on the loan.
The avg. U.K graduate starting salary U.K is £30,000 with a loan of £45,000.
If salary increases by 5.5% each year, at age 40, they'll be earning £78,644 P.A. and will have paid £33,264 towards the loan.
The value of the loan at 5.58% interest (10 year RPI avg. + 3%)? £79,676. They still have 10 years until it's written off.
When the loan is closed, the total contribution will be £103,587 age 51.
At a fair, 1.5% interest rate the avg. grad will clear their loan having paid £58,186 age 45.
If salary increases by 5.5% each year, at age 40, they'll be earning £78,644 P.A. and will have paid £33,264 towards the loan.
The value of the loan at 5.58% interest (10 year RPI avg. + 3%)? £79,676. They still have 10 years until it's written off.
When the loan is closed, the total contribution will be £103,587 age 51.
At a fair, 1.5% interest rate the avg. grad will clear their loan having paid £58,186 age 45.
Timeline
| 3 Aug 2022 | Petition opened for signatures |
| 17 Feb 2023 | Closed to new signatures |
Key facts
Signatures
413
Status
Closed
Department
Department for Education
Opened
3 Aug 2022
Closed
17 Feb 2023
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Source: the official petition page. Last checked 15 Jul 2026.