AssetID: 55500009
Headline: UNCAPTIONED: Tories Pledge To Cut Interest Rates On Student Loans
Caption: Tories Pledge To Cut Interest Rates On Student Loans. Kemi Badenoch says a future Conservative government would reduce interest rates on certain student loans, arguing the current system feels like a “scam” to many graduates. Writing in the Sunday Telegraph, Badenoch pledged to cap interest on so-called Plan 2 loans — issued between 2012 and 2023 at the rate of Retail Prices Index only, rather than RPI plus up to 3% depending on earnings. Around 5.8 million people took out those loans. Currently, interest can reach 3.8% plus an additional margin, increasing the burden on graduates. Badenoch says lowering the rate would help more young people pay off their debts. Education Secretary Bridget Phillipson acknowledged there are flaws in the system and said the government will keep it under review, aiming for a fairer approach. Chancellor Rachel Reeves has also suggested that cutting inflation could reduce repayment costs. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Current Affairs & Politics,Tories,pledge,cut,interest rates,students,scam Liberal democrats,Labour,Kemi Badenoch,cap,Plan 2 loans,payt off,graduates,depending on earnings,burden,costs,percentages
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