{"text":[[{"start":9.3,"text":"Interest rates on the most contentious student loan plans in England and Wales will be capped at 6 per cent from September as ministers move to protect borrowers from a rise in inflation resulting from the conflict in Iran. "}],[{"start":24.84,"text":"Those who started university between 2012 and 2022, and are therefore on a “plan 2” loan, are currently charged interest on a sliding scale rising from RPI rate of inflation to RPI plus 3 per cent depending on their earnings."}],[{"start":43.230000000000004,"text":"This means those earning more than £52,885 pay 6.2 per cent interest. "}],[{"start":52.370000000000005,"text":"The 6 per cent cap, announced on Tuesday, will apply to all plan 2 loans as well as “plan 3” postgraduate loans, holders of which pay RPI plus 3 per cent."}],[{"start":64.86,"text":"Ministers are reviewing a student loan system they acknowledge is “unfair” after a backlash from graduates and MPs over chancellor Rachel Reeves’ decision to freeze repayment thresholds last year in order to raise money. A decision is expected at the autumn Budget but the chancellor is said to be reluctant to reverse her changes. "}],[{"start":87.03999999999999,"text":"Interest rates on loans are usually calculated using the RPI figure for the previous March. RPI stood at 3.6 per cent in February and last month’s figure is expected to include the impact of the oil price increase caused by the conflict in the Middle East. "}],[{"start":106.07999999999998,"text":"The move follows similar caps introduced to deal with the jump in inflation that followed Russia’s full-scale invasion of Ukraine in 2022. From September 2022, rates were capped at 7.3 per cent, later rising to 7.9 per cent, at a time when RPI reached 14 per cent. "}],[{"start":127.91999999999999,"text":"Jacqui Smith, the universities minister, said on Tuesday that “we know that the conflict in the Middle East is causing anxiety at home” as Sir Keir Starmer’s government attempts to distance itself from US President Donald Trump’s actions. "}],[{"start":143.67,"text":"“Capping the maximum interest rate on Plan 2 and Plan 3 student loans will provide immediate protection for borrowers, supporting those who are most exposed within this already unfair system,” Smith said. "}],[{"start":157.95999999999998,"text":"She added that ministers were “continuing to look at the broken Plan 2 system we inherited, and the wider student finance system, to make it fairer for students, graduates and taxpayers”."}],[{"start":170.20999999999998,"text":"Kate Ogden of the Institute for Fiscal Studies said that if March’s RPI figure came in at 4 per cent, the cap “might benefit the highest-earning graduates by an average of around £500 over their lifetime”. Lower-earning graduates will not benefit unless RPI rises above the 6 per cent cap."}],[{"start":200.97999999999996,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1775702713_4004.mp3"}