# Interest rates on plan 2 and 3 student loans will be capped following widespread anger over graduates being stuck with ballooning debts.

*business · news · 2026-04-07 · The Mirror*

## Key points

- The government will cap Plan 2 and 3 student loan interest rates at 6% from September 1.
- Previously, interest rates were set at RPI inflation plus 3%, causing debts to grow despite repayments.
- The cap is a response to concerns about inflation rising due to the Middle East conflict.
- The largest outstanding student loan repayment as of January 2026 was £314,256.

**Countries:** United Kingdom

[Read the full story on The Mirror](https://www.mirror.co.uk/money/breaking-interest-rates-student-loans-36977986)

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