Overview
- New modeling by wealth manager Rathbones shows graduates on roughly £45,000 to £50,000 repay the most under England's Plan 2 loans.
- A borrower with a £50,000 balance who starts on £47,000 would repay about £136,000 over 30 years.
- Plan 2 charges interest from day one at the RPI inflation rate plus up to three percentage points and takes 9% of pay above a £29,385 threshold that is frozen until at least 2030.
- Lower earners such as £30,000 starters repay about £50,000 because any unpaid balance is wiped after 30 years.
- Ministers capped this year’s interest at 6% after media pressure, while a cross‑party inquiry and campaigners push to change thresholds, switch from RPI, and limit lifetime interest.