Introduce a Fixed Cap on Total Interest for Pre-Existing Plan 2 Student Loans. — 37 signatures. Status: open.
Introduce a fixed cap on total interest for all pre-existing Plan 2 student loans, ensuring borrowers cannot accumulate debt that far exceeds their original loan, and repayments can meaningfully reduce the balance instead of it growing indefinitely.
Plan 2 graduates face escalating debt due to high RPI-linked interest rates. The current system punishes ambition. Interest accrues faster than repayments, disproportionately penalising those whose earnings rise later in their careers. Students and their families were not given enough information. With the government now projected to make a net profit from these loans, this system is clearly excessive. A fixed cap would ensure fairness while preserving graduate contributions.
View this petition on the official UK Parliament website