Abolish real interest rates on Plan 2 student loans. — 8 signatures. Status: rejected.
Over 5 million people who began university between 2012 and 2023 have a Plan 2 Student Loan. Many of these loans accrue interest at up to RPI + 3% (currently 6.2%). The Government should abolish real interest on all Plan 2 student loans so that they only accrue interest at the rate of inflation.
Graduates with Plan 2 Student Loans must repay 9% of everything they earn over £28,470. However, because of the high interest rates a typical graduate has to earn £66,000 just to keep pace with the interests. Most graduates are trapped into 30 years of debt and many will pay back far much more than they borrowed. It would be fairer to align interest with the rate of inflation - as is the case for those who went to university before 2012 or after 2023 - so no-one pays back more they borrowed.
View this petition on the official UK Parliament website