WIREDGOV

The Welsh Government has agreed in principle to the UK Government’s proposal to cap interest rates on Plan 2 and Plan 3 student loans at 6% from September 2026, for the 2026 to 2027 academic year.

Any formal decision to proceed in Wales, including Regulations, is a matter for the next Welsh Government and subject to Senedd approval.

Vikki Howells, Minister for Further and Higher Education, said: 

I am pleased to support the proposed cap on the interest rates that young people are paying on their student loans. It will offer protection for student loan borrowers across Wales. A final decision on whether to apply the interest rate cap for Welsh borrowers will need to be taken by the next Welsh Government, following the Senedd election.”