UK Government Steps In to Shield Graduates From Rate Shocks

The UK government capped interest payments on student loans to protect graduates from potentially severe hikes as the war in Iran pushes inflation up.

From September, the rate for so-called plan two and three loans will be capped at 6%, a change from the previous level of the retail price index plus 3%, the Department for Education said Tuesday in a statement, adding that “graduates will not pay the price for a war which the UK has no direct involvement in.” RPI in February was 3.6%.