The petition of residents of the United Kingdom,
Declares that changes to the student loan system, including the decision to freeze loan repayment thresholds and alter interest rates, and the introduction of new loans with different repayment thresholds and write-off periods are unfair.
The petitioners therefore request that the House of Commons urges the Government to restore fairness by backtracking on its decision to freeze student loan repayment thresholds, and reviewing the interest rate structure to ensure that student loans remain affordable, proportionate, and supportive of aspiration rather than a long-term financial constraint.
And the petitioners remain, etc.—[Presented by Tom Gordon, Official Report, 9 June 2026; Vol. 787, c. 236 .]
[P003205]
Observations from the Parliamentary Under-Secretary of State for Education (Josh MacAlister):
Higher education creates opportunity, is an engine for economic growth, and supports local communities. We are committed to supporting the aspiration of every person who meets the requirements and wants to go to university.
The higher education funding system should deliver for our economy, for universities, and for students—which is why we are reforming higher education funding and regulation to better achieve this. Our reforms are already re-gearing student finance to better support disadvantaged students, make things fairer for graduates, and create a more flexible, responsive post-16 education system through the introduction of the lifelong learning entitlement.
The fiscal situation this Government inherited means that we have also had to make the tough choices necessary to protect taxpayers, students and our world-leading higher education sector, now and for future generations. We inherited a challenging situation, and it is going to take time to fix it.
We have already taken decisive action to make the system fairer for students, including:
Future proofing maintenance loans by committing to increase them in line with forecast inflation every year—delivering a 3.1% increase for the academic year 2025 to 2026, and a further 2.71% increase for the academic year 2026 to 2027. This will take the maximum loan for a student living away from home outside London to £10,830 in the academic year 2026 to 2027.
Making care leavers automatically eligible for the maximum rate of maintenance loan from the academic year 2026 to 2027, providing vital extra support for one of the most vulnerable groups in society.
Re-introducing targeted, means-tested maintenance grants from the academic year 2028 to 2029. These will provide disadvantaged students with up to £1,000 per year on top of existing maintenance loans, funded by a levy on providers for international students.
We are also making the system fairer for graduates:
Maximum interest rates on plan 2 and 3 student loans will be capped at 6% from 1 September 2026, for the academic year 2026 to 2027, delivering stability and protection for graduates from escalating student loan interest.
We increased the repayment threshold for plan 2 loans to £28,470 in April 2025—its first increase since 2021—and we increased it again on 6 April this year, to £29,385. This is higher than the average graduate salary three years after graduation of c. £28,100.
The plan 2 repayment threshold will remain at £29,385 until April 2030. At this level, a graduate whose salary is £30,000 will repay around £4 a month. A graduate whose salary is £50,000 will repay around £154 per month.
Overall, the student finance system removes up-front financial barriers so that everyone with the ability and desire to enter higher education can do so. Student loans continue to offer lower-earning graduates unique protections that are not found in any commercial loans. Repayments are made based on a borrower’s monthly or weekly earnings, not the interest rate or amount borrowed. Those who earn below the repayment threshold are not required to make any repayments at all, and any outstanding loans—including interest accrued—are written off at the end of the loan term at no detriment to the individual borrower.
As such, the student finance system remains heavily subsidised by Government. For loans issued to full-time undergraduate students in financial year 2024-25, we expect 29% of plan 5 loans and 32% of plan 2 loans to be written off. This is a deliberate investment in our people and the economy.