MPs Launch England Student Loan Inquiry as 34% Say Degrees Are Not Worth It
Updated
Updated · BBC.com · Jun 1
MPs Launch England Student Loan Inquiry as 34% Say Degrees Are Not Worth It
3 articles · Updated · BBC.com · Jun 1
More than 50,000 submissions have gone to MPs as the Treasury Select Committee opens an inquiry into England’s student loan system, starting with evidence from student groups and experts on Tuesday.
34% of people in 2025 said university is not worth the time and money, up from 14% in 2005, while the share saying graduates end up a lot better off fell to 36% from 50%.
Plan 2 borrowers are expected to be a focus because interest can outpace repayments: one graduate’s balance rose to £41,908 from £34,105 despite years of payments.
Graduates in England repay 9% of earnings above a threshold due to be frozen at £29,385 from April 2027 for three years, a move the NUS and campaigners say will pull more borrowers into repayment sooner.
The government says the system protects lower earners, has capped Plan 2 interest at 6%, and writes off unpaid balances at the end of the loan term.
Is England's student loan system a fair investment in the future or a lifelong financial trap?
Could a direct graduate tax be the solution to the UK's student debt crisis?
With student debt growing faster than repayments, is a university degree still worth the price?
Over 52,000 Voices: Treasury Committee Exposes Deep Flaws in England’s Student Loan System and Calls for Immediate Change
Overview
The UK Parliament's Treasury Committee launched an inquiry into the fairness and sustainability of England's student loan system, focusing on Plan 2 loans. The inquiry gathered public experiences and views, generating significant engagement from a self-selecting group. A central issue highlighted was the repayment threshold and interest rates, with graduates required to pay back 9% of earnings above £28,470. Many respondents expressed concerns about repayment terms, recalling assurances that thresholds would rise with inflation. High interest rates were a major source of dissatisfaction, showing a strong sense of unfairness and prompting calls for greater transparency and reform.