On April 7, 2023, the UK government announced that starting September 2026, it will cap interest rates on Plan 2 and Plan 3 student loans at 6%. This decision comes in response to concerns about rising inflation, exacerbated by global tensions, which could lead to increased borrowing costs for graduates. Currently, the interest rates for these loans can reach up to the Retail Prices Index (RPI) plus 3%, a system that has faced significant criticism for being unfair to borrowers. Approximately 5.8 million individuals hold Plan 2 loans, which are taken out by students who enrolled in university between September 2012 and July 2023. The government, represented by Jacqui Smith, the skills minister in the Department for Education, stated that this cap will provide immediate relief to borrowers and that they will continue to explore reforms to make the student loan system fairer. The tuition fees for the current academic year are capped at £9,535 in England and Wales.