Overview
- The Retail Prices Index for March, confirmed on Wednesday at 4.1%, sets the base rate for student loan interest from September 2026.
- The government will cap Plan 2 and postgraduate Plan 3 interest at 6% for one year from September 2026 to August 2027.
- Save the Student estimates only graduates earning roughly above £44,300 would have faced rates over 6%, so the cap chiefly helps higher earners.
- Plan 1, Plan 4 and Plan 5 borrowers face an uncapped rise from 3.2% to 4.1%, which increases the total they owe if repayments do not cover accruing interest.
- The Department for Education says any extension of the cap beyond August 2027 remains under review.