Rising debt burden hits all who aren't university students
The freeze on the repayment threshold for Plan 2 loans announced by Chancellor in November is sparking widespread anger among recent English and Welsh graduates. The scheme has been in place since 2012, but with the three-year freeze, graduates are now being asked to pay more towards their student loans, often leaving them with little flexibility or control over when their payments will be made.
Those who aren't university students bear no cost for others to attend higher education
Rachel Reeves is right that it's unfair that those who don't go on to university have to foot the bill for their friends and family. However, a more fundamental issue lies in the complex and convoluted loan system itself. According to experts at the Institute for Fiscal Studies, graduates will be repaying more than they borrowed once direct grants are factored into the equation.
Post-graduates pay up to 9% of their income
When Labour introduced tuition fees, the idea was that graduates would contribute financially to higher education. But this has morphed into a situation where post-graduates are paying an ever-increasing proportion of their income towards their student loans. Those earning more than £29,385 per year will pay 9% of any additional salary each month, with some owing thousands in interest over the course of up to 30 years.
The burden falls hard on those who can least afford it
For many graduates, these repayments are a significant burden, particularly in an economy where job opportunities are scarce and housing costs are soaring. It's little wonder that the system is causing frustration among young people. In reality, Labour's proposal to scrap tuition fees could be more progressive than simply freezing the repayment threshold.
The debt trap is far from over
While Labour may have made progress on tackling climate change, their economic policies leave much to be desired for graduates. Those left out of this package include lower-income students, who will still face high maintenance loan repayments. The system as a whole fails young people who are being forced into a cycle of debt that could last decades.
As elections approach, the true cost of Labour's inaction is becoming clear
The decision to freeze the repayment threshold has created a perfect storm for graduates. With a struggling economy and rising housing costs, those already struggling will be hit hard by this policy change. In Denton and Gorton, where the next parliamentary byelection will take place, young voters and graduates are likely to feel particularly affected.
With no clear solution in sight for this issue, it's left to graduate students to bear the financial burden.
The freeze on the repayment threshold for Plan 2 loans announced by Chancellor in November is sparking widespread anger among recent English and Welsh graduates. The scheme has been in place since 2012, but with the three-year freeze, graduates are now being asked to pay more towards their student loans, often leaving them with little flexibility or control over when their payments will be made.
Those who aren't university students bear no cost for others to attend higher education
Rachel Reeves is right that it's unfair that those who don't go on to university have to foot the bill for their friends and family. However, a more fundamental issue lies in the complex and convoluted loan system itself. According to experts at the Institute for Fiscal Studies, graduates will be repaying more than they borrowed once direct grants are factored into the equation.
Post-graduates pay up to 9% of their income
When Labour introduced tuition fees, the idea was that graduates would contribute financially to higher education. But this has morphed into a situation where post-graduates are paying an ever-increasing proportion of their income towards their student loans. Those earning more than £29,385 per year will pay 9% of any additional salary each month, with some owing thousands in interest over the course of up to 30 years.
The burden falls hard on those who can least afford it
For many graduates, these repayments are a significant burden, particularly in an economy where job opportunities are scarce and housing costs are soaring. It's little wonder that the system is causing frustration among young people. In reality, Labour's proposal to scrap tuition fees could be more progressive than simply freezing the repayment threshold.
The debt trap is far from over
While Labour may have made progress on tackling climate change, their economic policies leave much to be desired for graduates. Those left out of this package include lower-income students, who will still face high maintenance loan repayments. The system as a whole fails young people who are being forced into a cycle of debt that could last decades.
As elections approach, the true cost of Labour's inaction is becoming clear
The decision to freeze the repayment threshold has created a perfect storm for graduates. With a struggling economy and rising housing costs, those already struggling will be hit hard by this policy change. In Denton and Gorton, where the next parliamentary byelection will take place, young voters and graduates are likely to feel particularly affected.
With no clear solution in sight for this issue, it's left to graduate students to bear the financial burden.
The whole system is messed up 
. I mean, why should those who aren't even going to uni have to pay for their mates and family's education? It's not fair at all! And now they're freezing the repayment threshold, so graduates are just stuck with more debt than ever 
. It's like, how are people supposed to afford housing and living costs when they've got a big chunk of their income going towards student loans? 
We need some real change here, not just a Band-Aid solution 
.
. It's not like that's a lot of time, but apparently, it is 
. All these graduates are already struggling, and now they have to deal with this debt on top of everything else 
.
It's not like they even get to choose when they start paying back those loans... it's just something that's stuck on them for 30 years 
. And what about those who can't afford the repayments? They're basically stuck in debt forever 
I totally get why people are so mad about this new plan... my little cousin just finished uni last year and she's already feeling the pinch with her student loan repayments 
It's not just about paying up or down, it's about creating a system where people are treated equally and don't feel like they're being taken advantage of.
What's even more concerning is that those who can least afford it are getting hit the hardest 
not just those who can afford it. It's time to rethink our priorities and create a system that works for everyone, not just the few 
