This petition was submitted during the 2019-2024 parliament
Petition Make Plan 2 Student Loans fair by capping the interest rate at 1.5%.
Due to the radical interest rates applied, the interest accrued is drastically outpacing repayments leading to loans becoming a life-long tax. As the loan grows, graduates will continue to pay a basic tax rate (>£27,288) of 29% and a higher rate of 49% whilst making little to no impact on the loan.
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The avg. U.K graduate starting salary U.K is £30,000 with a loan of £45,000.
If salary increases by 5.5% each year, at age 40, they'll be earning £78,644 P.A. and will have paid £33,264 towards the loan.
The value of the loan at 5.58% interest (10 year RPI avg. + 3%)? £79,676. They still have 10 years until it's written off.
When the loan is closed, the total contribution will be £103,587 age 51.
At a fair, 1.5% interest rate the avg. grad will clear their loan having paid £58,186 age 45.
This petition is closed This petition ran for 6 months