"The government announced a 6% cap on interest rates for plan 2 undergraduate and plan 3 postgraduate loan repayments from 1 September this year. This will provide slight relief to higher earners who are now paying the maximum interest rate of 6.2% on their undergraduate loan, as well as a further 6.2% on postgraduate loan repayments."
"Most plan 2 graduates will still see their interest rate rise in September because of the way it is linked to inflation. In simple terms, the plan 2 people currently pay between 3.2% and 6.2%, but this will rise to between 4.1% and 6%."
"Despite having consistent work and starting to make sizeable monthly repayments since graduating, graduates are caught in a student loan debt trap where the interest being added dwarfs any headway we make."
"I was shocked to see that the amount I still had to repay had risen from my initial total borrowing of 51,529 to 65,879."
Many graduates, burdened by student loans, are facing increasing debt despite making repayments. The government announced a 6% cap on interest rates for certain loans, providing some relief. However, most plan 2 graduates will see interest rates rise due to inflation. The initial borrowing amount can significantly increase over time, leaving graduates shocked at their remaining debt. The situation has led to outrage among graduates who feel trapped by their financial obligations.
Read at www.theguardian.com
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