UK public lender of student loans
Federal student‑loan regulations have changed this week under the One Big Beautiful Bill and court rulings. The Education Department has rolled out new repayment plans, temporary interest‑rate cuts for autopay enrollees, and lifetime borrowing caps for graduate and professional students, while a federal judge has paused the department's narrowed definition of "professional degree," temporarily preserving wider borrowing access for many advanced‑health and other programs. Notices are going out to millions of borrowers who must pick new plans.
The SAVE income-driven repayment plan has ended and servicers have begun notifying roughly 7–7.5 million borrowers that they have 90 days from their notice to choose a replacement. New Department of Education rules that took effect on July 1 have created a Repayment Assistance Plan and a Tiered Standard plan, tightened graduate and Parent PLUS borrowing caps, and added a temporary autopay interest discount.
A Commons Treasury Committee has criticised the government for freezing the student loan repayment threshold for Plan 2 loans at £29,385 from 2027 to 2030, instead of uprating with inflation. The report labels the move mis-selling and calls for reversal in the autumn budget, arguing the policy loads unfair costs onto younger generations. MPs reference earlier promotional material and warn of a loss of trust in the system.