Lucy Powell has taken a break from being Labour's deputy leader to become education secretary, and she's already discovered that the student loans system exists and might not be entirely fair. In a stunning display of political bravery, she told the BBC the issue is at the top of her in-tray, which is bureaucratic for 'I've heard about this and I'm thinking about it.'

Powell stood by her February comments that the interest rates on Plan 2 loans - taken out by English students between September 2012 and July 2023, and still issued in Wales - were 'egregious.' She's committed to looking at the issue, though she 'can't make any promises,' which is politician for 'don't hold your breath.'

Plan 2 loans require graduates to repay 9% of their income above the repayment threshold. Last November, then-Chancellor Rachel Reeves froze that threshold at £29,385 between 2027 and 2030, meaning students start repaying sooner and pay more over time. Reeves called it 'fair and proportionate.' Campaigners called it something else, and have demanded a reversal. In April, the government capped interest on some Plan 2 loans at 6%, which is like putting a Band-Aid on a hemorrhage.

Powell, whose eldest child has a Plan 2 loan, called the interest rate - RPI plus 3% - 'egregious' again, because consistency is a virtue. She described it as a 'real cost-of-living issue' for young people who 'never, ever pay off the capital.' MPs on the Treasury Committee recently said comparing student loan repayments to phone contracts or cinema tickets 'amounted to mis-selling' - a finding that came after a BBC investigation revealed the government did exactly that in school talks a decade ago.

Conservative leader Kemi Badenoch has proposed capping Plan 2 interest at RPI only (currently 3%), which is roughly as helpful as suggesting students try being richer.

Powell says the issue 'needs looking at.' We'll keep you posted on whether 'looking at' turns into 'doing something about.'