Student Loan Terms to be Made Clearer in England The UK government's promise to clarify student loan terms for university applicants has raised hopes that some egregious features of the current system may be addressed.
However, this is merely the latest iteration of a long standing issue – one that has been simmering beneath the surface for years. Plan 2 loans have been issued in England since 2012.
These loans are characterized by an interest rate pegged to the Retail Prices Index (RPI) plus up to 3% depending on earnings, and borrowers repay at a rate of 9% of everything they earn over a threshold that rises with inflation every year.