Rejected petition Uprate Plan 2 repayment threshold and cap student loan interest.

Change Plan 2 student loan rules so the repayment threshold rises each year with average earnings, and cap Plan 2 interest at inflation (RPI) for existing and future borrowers. Reverse the 2027–2030 threshold freeze.

More details

Freezing the Plan 2 repayment threshold at £29,385 from April 2027 for three years increases repayments through fiscal drag, especially for low and middle earners.

Plan 2 interest can be RPI plus up to 3%, so balances may grow despite repayments.

Student loans are presented as a contract; retrospective-style worsening of terms may be legal but feels unfair and undermines trust.

This petition was rejected

Why was this petition rejected?

There’s already a petition about this issue. We cannot accept a new petition when we already have one about a very similar issue.

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You may wish to sign this petition which calls for the same action:

Restore Plan 2 student loan repayment threshold increases from April 2026
https://petition.parliament.uk/petitions/759293

We only reject petitions that don’t meet the petition standards.