Student Loan Interest Rates Capped at 6%: What You Need to Know

0:00On April 7th, ministers just drop big news on student loans. Interest rates for Plan 2 and Plan 3 will be capped at 6% starting in. September. That's a direct move from the Department for Education to ease the squeeze on grads facing sky high costs. Right now, those rates track the retail price index inflation, which is spiked as high as 9%, plus up to 3% more, based on earnings. While studying its retail price index plus 3% flat, feeling a huge backlash for change, borrowers are breathing easier with this cap, especially since it's half the recent peak, though still double the current consumer price index at 3%. Skills Minister Jackie Smith called it, key protection against global shocks like the Middle East, tensions pushing prices up. Plan 2 covers undergrads and post-grad teaching certs from September 1st, 2012 in Wales, and up to July 31st, 2023 in England.

1:00Plan 3 hits post-grad masters and doctorates there too. Politicians are split. Tories push limiting to retail price index only, while greens want billions wiped out. This cat-vice time, but the fight over fair loans, rose on.