Powell says student loan system at top of in-tray
UK Education Secretary Lucy Powell has identified the student loan system as a top priority for reform. She expressed concerns regarding the 'egregious' interest rates on Plan 2 loans and committed to reviewing the current repayment structure.
Why it matters
Potential policy changes could significantly impact the financial burden on millions of UK graduates and influence future government spending on higher education.
Image source, PA Media By Richard Wheeler Political reporter Published 10 minutes ago Lucy Powell has said she wants to make sure the student loans system is "fair" and that the issue is at the top of her in-tray as the new education secretary.
Labour's deputy leader told the BBC she stood by comments she made in February that the interest rates graduates with Plan 2 loans were paying were "egregious".
She said she was committed to looking at the issue, although acknowledged she "can't make any promises" about changes.
Plan 2 loans were taken out by students in England between September 2012 and July 2023, and are still issued in Wales. Graduates pay back what they earn above the repayment threshold at a rate of 9%.
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