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UK Caps Student Loan Interest Rates at 6% for 2026-27

4/11/2026

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Summary

Story summary

The UK government has capped interest rates for plan 2 and plan 3 student loans at 6% for 2026-27.
The cap aims to ease inflation concerns linked to the Iran war, which could raise loan costs.
Plan 2 loan rates currently vary by income, from 3.2% to 6.2%.
Experts predict inflation could reach about 4%, affecting repayments.
The cap could cut lifetime repayments for high earners by about £500.

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Story summary

The UK government has capped interest rates for plan 2 and plan 3 student loans at 6% for 2026-27.
The cap aims to ease inflation concerns linked to the Iran war, which could raise loan costs.
Plan 2 loan rates currently vary by income, from 3.2% to 6.2%.
Experts predict inflation could reach about 4%, affecting repayments.
The cap could cut lifetime repayments for high earners by about £500.