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The Labour Party government has frozen the repayment and interest rate thresholds for Plan 2 student loan repayments for three years beginning in 2027-28.

Chancellor Rachel Reeves made the announcement as part of the Autumn Budget, which is currently being delivered.

The announcement, which freezes interest rates at 7.9 per cent, instead of falling alongside interest rates and inflation, will raise £400m a year.

READ MORE: Keir Starmer makes state pension 'means test' claim

Today's other major announcements include an extension of the freeze on income tax thresholds.

This extension will last for another three years beyond 2028, with the so-called stealth tax expected to raise £8.3bn a year.

It will mean income tax thresholds do not increase with inflation, meaning more p

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