Ministers will step in to stop student loan interest rates soaring to 12 per cent, the Daily Mail can reveal.
They are expected to announce plans as early as this week to cap the rates and prevent thousands of pounds being added to graduates’ debt.
Analysis by the Institute for Fiscal Studies last month warned that rising inflation would cause a ‘rollercoaster ride’ for borrowers.
Economists said the highest earners, who took out a student loan since 2012, would see the maximum interest rate rise from 4.5 per cent to an ‘eye-watering’ 12 per cent for half a year.
