INTEREST rates for plan two and plan three student loans will be held at 6 per cent as of September, the government announced today.Ministers announced the cap as higher inflation is expected to drive up repayments for graduates, following intense criticism over loans becoming a “debt trap” for many.With inflation expected to increase even more due to the US war of aggression in Iran, skills minister Jacqui Smith said the government had the power to “protect” people from shocks in global markets.

INTEREST rates for plan two and plan three student loans will be held at 6 per cent as of September, the government announced today.

Ministers announced the cap as higher inflation is expected to drive up repayments for graduates, following intense criticism over loans becoming a “debt trap” for many.

With inflation expected to increase even more due to the US war of aggression in Iran, skills minister Jacqui Smith said the government had the power to “protect” people from shocks in global markets.

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