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Thu, 12 Mar 2026

Thu, 12 Mar 2026 Student loans inquiry to look at whether system is 'unfair to graduates'

The Treasury Committee will look at whether "the goalposts [have] been moved in a way which is unfair".

* MPs have launched an inquiry into student loans in England due to "widespread dissatisfaction" over repayment terms.
* The Treasury Committee will examine whether freezing the repayment threshold for many graduates is fair and reasonable.
* The decision to freeze the threshold at £29,385 between 2027 and 2030 means graduates will start repaying sooner and a greater proportion of their salary will be subjected to student loan repayments.
* Campaigners are calling for the freezes to be reversed, as well as lower repayment rates and interest rates.
* The inquiry will also consider whether repayment terms are "reasonable" when considered alongside broader taxation of graduates such as income tax.
* Graduates with Plan 2 loans pay back 9% of everything they earn over the threshold, which has been frozen at £29,385.
* The Department for Education (DfE) says the freezes aim to "protect taxpayers and students".
* Dame Meg Hillier, chair of the Treasury Committee, said many people had benefited from widened access to higher education through the student loan system but that the inquiry would ask whether the goalposts have been moved in a way which is unfair to graduates.
* Graduates are calling for changes to the system, including being properly informed about financial ramifications and lower repayment rates.
* The DfE said it had inherited a student loans system "devised by the previous government" and that the freezes were there to protect taxpayers and students.
* The National Union of Students and the Rethink Repayment group have welcomed the inquiry and are ready to work together to fix student loans.