Restore Britain's 25 September announcement (opens in a new tab) proposes removing student loan interest for British citizens resident in the UK. This is a party proposal. Borrowers should use GOV.UK's repayment guidance (opens in a new tab) for the rules that apply now.
Who would qualify?
The announcement makes two conditions explicit: British nationality and residence in the United Kingdom. Applicants would provide evidence of both to the Student Loans Company. The proposal covers interest already accumulated as well as future interest; it does not propose cancelling the original amount borrowed.
The full paper (opens in a new tab) says British citizens abroad could apply after returning to live in the UK, with applications remaining open on an ongoing basis. Living in Britain alone would not establish eligibility.
Would monthly repayments fall immediately?
The paper keeps existing repayment thresholds. Removing interest would allow repayments to reduce the original balance faster, potentially bringing forward the date a loan is paid off.
Under the current system (opens in a new tab), compulsory repayments depend on income above a plan's threshold. The size of the outstanding balance does not determine the normal income-based deduction. A smaller balance therefore does not automatically mean a smaller monthly repayment while a loan remains outstanding.
What would it cost?
The paper's £5.46bn figure estimates interest associated with borrowers in the UK tax system who were making repayments. It is not a definitive annual fiscal costing. Some interest would never be recovered under existing write-off rules, and the published data do not precisely identify eligible British citizens. The paper says government modelling is needed to calculate the cost.
Those distinctions matter when comparing headlines: the balance reduction, annual interest added and eventual cost to government are different measures.
Where this fits in the party's platform
Our education policy guide also covers school attendance, apprenticeships and school funding. The broader tax and spending proposals are in The Wealth of Our Nation explainer. The official papers index (opens in a new tab) provides the original publications and their dates.