In England, the government will cap interest on Plan 2 student loans at 6% for the 2026–27 academic year, along with applying the same cap to postgraduate Plan 3 loans. The stated goal is to protect borrowers from inflation risk tied to the Iran war and other global shocks. The cap is described as an RPI-based formula plus up to 3%, and follows earlier periods when caps were introduced when officials expected inflation-driven interest growth to climb. The government described the change as immediate protection for borrowers exposed within an “unfair” system. Student advocates welcomed the update but argued it is not enough without further changes, including adjusting repayment thresholds frozen under prior budget decisions. For higher-ed institutions with UK policy impacts, the move could affect borrower expectations, enrollment demand for postgraduate programs, and financial counseling needs—particularly for students focused on repayment sustainability.