England will cap interest on some student loans at 6% beginning with the 2026–27 academic year under the government’s Plan 2 and postgraduate loan changes, according to the Department for Education. Officials said the cap is designed to protect borrowers from inflation risks tied to the Iran war and broader global shocks. The announcement follows calls to lower interest rates as part of a wider review of the Plan 2 repayment system. The Plan 2 interest rate is normally set based on the retail prices index measure of inflation plus up to 3%, with caps previously implemented during earlier high-inflation periods. Student leaders welcomed the move but said it cannot resolve the underlying “broken” Plan 2 structure. For higher education operators with UK recruitment and admissions ties, the policy is a reminder that tuition affordability, debt cost, and repayment thresholds can still shift quickly due to geopolitical and macroeconomic pressures.