Remove all interest from Plan 2 student loans and recalculate balances

Remove all interest from Plan 2 student loans and recalculate balances — 120 signatures. Status: open.

Petition background

Remove all interest from Plan 2 student loans and recalculate outstanding balances as if no interest had been applied since the loans were issued.

Additional details

Plan 2 student loan borrowers are charged high interest while studying and after graduation, causing balances to grow even when repayments are made. Many graduates will repay far more than they borrowed or never clear their loan. In our view, borrowers had no choice over being placed on Plan 2 or its terms. We think removing interest and recalculating balances would restore fairness, improve trust in the student finance system, and ensure repayments reflect the original cost of study.

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