Plan 2 student loan interest rates capped at 6% in England

Interest rates on Plan 2 student loans in England will be capped at 6% for the 2026-27 academic year to protect graduates from rising inflation due to the Iran war. Skills Minister Baroness Jacqui Smith stated that this measure aims to defend borrowers against the consequences of distant conflicts. While this is a step forward, there have been calls for a broader overhaul of the student loan system.