On a Plan 2 Student loan? Why freezing the repayment threshold from 2027 to 2030 is, in my view, a breach of natural justice. A brief audio explainer

Who are on Plan 2? Students from England who started Uni (anywhere in UK) from 2012/13 academic year to 2022/23. Welsh students 2012/13 onwards are also, but Welsh govt has said it 'intends' to try and no freeze the threshold.

Absolutely spot on Martin. I am deeply concerned about this profoundly unfair change. The government would not act like this towards pensioners. Please keep up your excellent work on this.

P2 has and always will be a grossly unfair system that will ultimately make the UK poorer. I'm on P1 and will make my final payment next month, having repaid over £25k in debt but I feel that is fair. Most grads on plan 2 will never fully repay making them and the UK poorer.

The current student loan system penalises students from low income households. That is simple unfair, l always believed a Labour government stood on equality of opportunity!

Honestly the student loan repayment approach is a national scandal. There is an attempt To make money off young people’s future. It’s sickening. Interest free loans for the tuition only. Reduce rate at which you pay back Reduce threshold

Thankyou for vigoursly pursuing this Martin..,,young people deserve so, so much better 🙏

Massive thanks to Martin for speaking up about this. It’s wrong on so many levels. For individuals and future society

Freezing the repayment threshold, using RPI+ instead of CPI, taking payments each month but only deducting them once a year: if the pension gets the triple lock, student loans get the triple shaft.

In 19 years time, when the government starts wiping the debt, what number will be wiped off the books per person, just their initial loan, or the loan with the compound interest applied? (e.g. 27k or potentially 100k+) How will that affect UK deficit/black hole?

You should have defended free uni and college education, Martin. By failing to do so, you actively encouraged young people to sign up to crippling debt.

Martin - who is profiting from these exorbitant repayments, as I read the company running scheme was non-commercial, non-profit?

Profit is the wrong term. This is all about 'who pays' for higher education. Freezing the repayment threshold shifts the pendulum away from the state and more towards the individual graduate.

Tks. Please keep banging the drum on this issue Martin. As a parent it's so upsetting to see this cohort of brilliant, aspiring young adults being crushed by a dubious, immoral decision made by @RachelReevesMP Our kids, as our future, deserve so much more

Freezing the Plan 2 threshold from 2027-2030 feels like moving the goalposts on a signed contract. Graduates already stretched, this may hit hard.

Nevermind freezing the repayment thresholds, just charging interest is bad enough, and the people behind this hairbrained idea got their education for free (either paid for by family, or though grants).

After nearly a decade of repayments, I still owe £51k. NHS staff who never benefited from bursaries are consistently the ones shouldering the burden. This student loan system is a farce and needs to be abolished.

If a high street loans company had done what the Student Loans Company has done, @FishwickDavid would start a campaign against them.

Won’t be long before you start repaying on minimum wage. It’s a joke. No one will want to go to university soon. A lot of universities will be going bust. Another industry destroyed by this government.

Abolish it, Starmer had always spoken about abolishing it, until he came into power and now he doesn’t need support. Rachel talks about fair, strange when she didn’t had to pay a penny for the same education.

Has there been any impact studies of this? It disincentivises earning above the 40% tax threshold, as at that point your effective tax rate of earnings is 51% (40% Tax, 9% SL, 2% NI) This creates a motivation to potentially drop hours and have your free time instead of wanting to earn more - This is how I feel, sooner drop a day and have the free time, although not carried through with it - but its a nagging thought… Surely it contributes to a productivity problem in some areas in the UK economy? It’s simply unfair, I understand there are beneficiaries of it, but the repayment thresholds needs to increase in line with inflation - otherwise its the working class who are hit the hardest who couldn’t afford to pay it outright. Quite regressive.

Student loans are such a scam, when people actually look at the numbers, they are shocked. No surprise there.

Any thoughts on the rationale for higher earners incurring a significantly higher interest rate?

Thank you for highlighting this. It is the behaviour of a loan shark, not a government, to change the terms 10 years into a loan agreement. If any commercial lender did this it would be breach of contract. Disgraceful.

@RachelReevesMP @bphillipsonMP are you crooks both listening?

Totally agree. But it's part of a wider failure. Fiscal drag is a poison we have let Politicians dispense for too long. Both the Grad Tax repayment threshold and all earned income tax and NICS thresholds must now be Triple Locked. Its time for the #WorkersTripleLock. Please like retweet and follow if you agree.

If government is allowed to change contract terms, then why are we not able to?

Students need to be told upfront they are subsiding pensioners.

Thank you @MartinSLewis sharing my kids

Absolutely she should never have been allowed to get away with this!!! Vile woman

What would be a wiser mover for parents.. to pay the deposit on a flat their child wants to buy, or to pay off the university fees that child is having to pay?

Whilst I agree, increasing the threshold will make the common complaint "I paid what was required, but my loan amount is still going up" worse.

@wesstreeting well????? Any words???

Martin, what about those undertaking 5 yesterday courses, eg. medicine/dentistry? That's 2 extra years of a loan that is totally onerous and unfair. Shld the additional two yrs not be written off?

👍