Overview
- An opposition day motion will call for ending “real interest” above inflation on Plan 2 loans and for lifting the repayment salary threshold.
- The measure is unlikely to pass given Labour’s large majority, though it is intended to increase political pressure on ministers.
- Rachel Reeves said the student loan framework is broken but not at the front of the government’s agenda, with the repayment threshold frozen at £29,385 for three years.
- Official data show interest accrued at about £482 per second in 2024–25, adding £15.2bn as total outstanding student debt reached roughly £266.6bn, with £5bn repaid.
- Plan 2 loans charge RPI plus up to three percentage points for those who started university between 2012 and 2023, and a Treasury Committee inquiry into fairness is underway.