Petition · Department for Education

Align Plan 2 student loan interest rates with Plan 5 (RPI only).

Open for signatures 167 signatures

What the petition asks

We call on the government to remove the +3% 'real' interest rate from Plan 2 loans and cap interest at RPI, as is the case for students who started after 2023.
Plan 2 graduates are the only cohort charged interest above inflation, creating an unfair 'middle-earner trap' where balances grow despite regular repayments. Furthermore, the government has frozen the Plan 2 threshold at £29,385 until 2030. As wages rise with inflation, this acts as a stealth tax. We ask that the threshold also be adjusted annually in line with the Retail Price Index (RPI).

Timeline

10 Mar 2026 Petition opened for signatures

Key facts

Signatures 167
Status Open for signatures
Department Department for Education
Opened 10 Mar 2026

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Source: the official petition page. Last checked 26 Jul 2026.