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Government will ‘look at’ student loan repayments
The Gazette
|February 23, 2026
THE Education Secretary has said she will “look at” Plan 2 student loans amid widespread concerns over repayment costs, but refused to commit to changing the system.
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Bridget Phillipson insisted she wanted “fairer” arrangements for graduates but warned the Government was dealing with “a question of priorities” when asked whether the burden would be eased. Following Chancellor Rachel Reeves’ November budget, the salary threshold at which repayments kickin under the Plan 2 system will be frozen at £29,385 for three years, leading to many having to pay more.
Interest on these loans is charged at the rate of Retail Prices Index (RPI) inflation plus up to 3%, depending on how much a graduate earns.
This story is from the February 23, 2026 edition of The Gazette.
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