Student loan interest could rise despite cap on rates

Temporary limit in England and Wales won’t stop many facing higher charges from autumn due to jump in inflation from Iran war

• Government caps some student loan interest at 6%

Some students and graduates are likely to pay slightly less interest on their student loans than expected as a result of action taken by the government this week.

But while many higher earners will benefit from the news that interest will be capped at 6% for the 2026-27 academic year, many others are likely to have more interest added to their student loan from this autumn than is being applied at the moment. For that, they can blame Donald Trump.