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Original poster

Student loan repayments are completely unfair

263 replies

Sammy900 · 13/03/2026 21:31

I've thought for ages that student loan repayments are a complete rip off. I'm so glad they are now all going under review.

They were mis-sold at the time as a minor "graduate tax" that you'll barely notice and there weren't any other options available to enable low income households fair access to higher education.

I didn't realise then that this would turn into a lifelong debt, with snowballing interest that makes it impossible to clear.

I'm on the original plan 1 which just goes on and on until I'm 65.

The next plan 1 deal after 2006 then decided that 25 years was a fair term (not 47 years!!). Such a huge difference in what will be paid back.

Any other standard loans have much shorter terms.

It was based on the assumption that you would continue to be a low earner for the rest of your life and not move up the career ladder.

I really think that the government / treasury should look into the fairness of the terms of the original plan 1 loans too not just Plan 2.

I think you can submit your case to your local MP and with the treasury committee if you feel that you are paying back a student loan on unfair terms and now is the time to do so.

I really hope this gains momentum and something can be done about it finally.

What are your thoughts?

OP posts:
han6729 · 22/03/2026 11:20

Sammy900 · 22/03/2026 11:16

It's a loan it's not free tax-payers handouts.

Also students then become graduates who then become employed also pay their taxes.

With the ridiculous interest rates and life-long contracted terms this debt is not only paid back (the original loan amount) but also sometimes double back in interest alone plus standard taxes on top.

Show quote history

It stops becoming just a loan though if people borrow money from the state and don’t pay it back in line with inflation. The £20,000 I borrowed 20 years ago is worth a lot less today if I were to pay the £20,000 back today. Insisting on loans being interest free is expecting a form of state hand out.

Original poster
Sammy900 · 22/03/2026 11:18

TowerRavenSeven · 21/03/2026 20:53

I’m in the US where having a loan over 100,000 is not uncommon at all. The debt never gets reduced and will follow you until you die and then your children will be responsible for it. I remember working with a woman who was specifically working so her sons wouldn’t need to take out student loans and it inspired me to do the same when I got married. We have paid over $200,000 to send one ds to a public US University but I don’t begrudge it one bit.

That's astonishing! But because it's the norm doesn't make it right or fair. Really feel bad for people in this situation.

OP posts:
Original poster
Sammy900 · 22/03/2026 11:16

OhDear111 · 21/03/2026 22:49

@TowerRavenSeven In the uk, many would not save this in a lifetime. Many have no culture of saving and expect the state (taxpayers) to pay for students. This worked until the huge expansion of the university sector but we are addicted to state handouts. It’s not possible for general taxation to pay for this but I fundamentally disagree that it’s huge burden or that it’s the same as standard loan from a back. It’s plainly not.

It's a loan it's not free tax-payers handouts.

Also students then become graduates who then become employed also pay their taxes.

With the ridiculous interest rates and life-long contracted terms this debt is not only paid back (the original loan amount) but also sometimes double back in interest alone plus standard taxes on top.

OP posts:
H202too · 22/03/2026 09:04

OhDear111 · 21/03/2026 22:49

@TowerRavenSeven In the uk, many would not save this in a lifetime. Many have no culture of saving and expect the state (taxpayers) to pay for students. This worked until the huge expansion of the university sector but we are addicted to state handouts. It’s not possible for general taxation to pay for this but I fundamentally disagree that it’s huge burden or that it’s the same as standard loan from a back. It’s plainly not.

Culture of saving? I mean possibly but it is really expensive to live here compared to the states. House prices and they recoil in horror and our petrol prices. On the other hand we don't need health insurance to get antibiotics.

OhDear111 · 21/03/2026 22:49

@TowerRavenSeven In the uk, many would not save this in a lifetime. Many have no culture of saving and expect the state (taxpayers) to pay for students. This worked until the huge expansion of the university sector but we are addicted to state handouts. It’s not possible for general taxation to pay for this but I fundamentally disagree that it’s huge burden or that it’s the same as standard loan from a back. It’s plainly not.

TowerRavenSeven · 21/03/2026 20:53

I’m in the US where having a loan over 100,000 is not uncommon at all. The debt never gets reduced and will follow you until you die and then your children will be responsible for it. I remember working with a woman who was specifically working so her sons wouldn’t need to take out student loans and it inspired me to do the same when I got married. We have paid over $200,000 to send one ds to a public US University but I don’t begrudge it one bit.

KitTea3 · 21/03/2026 19:41

I think ive only been able to pay towards mine once a year when they take about £20-40 off my yearly bonus (as Im only been able to work part time after returning to work after my last suicide attempt so I'm only just paying income tax and definitely not enough make repayments ) . Over 13 years I dont think I've made much a dent 😶 I mistakenly thought mine was written off after 30 years and then looked it and realised I'm on plan 1 (that said I think the interest rate is only 3.2%) so it's 65.

I can't really complain though. It's not anyone fault but my own I guess, I ended up very ill (after having mental illness issue since 11) and was too unwell to work at all, then couldn't work full time. That's on me. But would like to stress not what I went into uni at 18 thinking it hoping that's what the outcome would be.

I thought I'd get my degree, I'd move make a fresh start, work my way up, not just in a job but have a career, thought I'd have settled down, found my independence and lives really.

Unfortunately it all went to shit. 🤷🏻‍♀️ And at 39 I'm still trying to put the pieces back together (very slow process but might have some semblance of a life and not just exist before 40...if my physical health issues don't decide to continue ramping up and finish me off first 😬😭).

End of the day i took the loan, I owe the moneym I should and will if I can pay towards it.

But I do agree it was missold in a way
-The interest rates were never explained to us
-we were led to believe we'd been paying it back over a shorter period (plan 1)
-we were repeatedly told it wasn't like a normal debt or loan
-we were also told making repayments wouldn't affect us finally inb the future (Except it does effect affordability and IS used)

Blushingm · 21/03/2026 18:47

OhDear111 · 15/03/2026 18:48

Just to repeat and be ultra boring: NO- ONE is required to pay off the loan! Teachers start off not paying much per annum on payments. Like everyone else, when they move up, they pay more. It’s not a worse job than others have at all. Heads can earn well in excess of £100,000. Like most careers, there’s a prune to pay early on but many I know love teaching and certainly love the holidays. I think golden hellos should be added to the loans if teachers don’t stay. It’s just wasting money.

Unless nurses want managerial responsibility they can’t earn more than £38k. They will be paying back forever and accruing interest

han6729 · 21/03/2026 09:23

As a tax payer I’m not signing that petition, it’s juvenile. Simply cutting interest charges in isolation will not fix the issue. Whatever is introduced still needs to be sustainable. There is no reason to cut interest on Plan 1. And we need to look at how universities are operating.

I also think we can look at how we treat different degrees, I’d support this more for professions we desperately need like teaching and medical for example, but not for every Tom, Dick and Harry to go do a humanities degree to end up in Tesco (signed, a humanities graduate).

OP posts:
OhDear111 · 16/03/2026 23:18

@Sammy900 You were given money up front by the state. You don’t need to pay it back. You pay according to earnings and you definitely knew that unless you were permanently under a stone and read nothing. You did know this. You are right that they have messed with interest rates and I disagree with that but missold? Come on. Get the money from a bank then! See what a loan really looks like.

Original poster
Sammy900 · 16/03/2026 11:26

Me too! another really valid point about it being sexist

I'm just looking at filling in the Treasury survey now

I'll come back and update if I get anywhere with it

OP posts:
H202too · 16/03/2026 11:01

Sammy900 · 16/03/2026 09:26

If like me, you do feel that you were mis-sold a student loan or that it has unfair and ridiculous terms and interest rates / conditions and want your situation to be reviewed on an individual merit. There are a few things you can do I've learned...

Email your local PM and tell them and ask them to represent you and bring it up for debate in parliament or refer you to the PHSO

Email the Treasury Committee

Appeal to SLC - has anyone ever done this?? What was the outcome? I'm tempted

Complain to SLC - again has anyone ever done this - what did they say? I suspect currently we wouldn't get far with them - but parliament maybe as its all up for review again and they've admitted its a mess

There are a few government petitions out there to share amongst your peers and sign

"Write off all Plan 1 student loans after 25 years"

and others have a look

Does anyone have any other advice? Interested to hear about people who have complained or appealed to SLC

I have emailed my Mp and filled in the questionnaire.
I am annoyed how it affects women. Let me know if you have any luck with the other avenues.

Original poster
Sammy900 · 16/03/2026 10:06

I've just found this too from the treasury committee. Deadline April 14th

To share your experience with the Treasury Committee's inquiry into student loans, you can use their official online survey.

  • Official Survey Link: Your experience of student loans – This 10-minute questionnaire is specifically for individuals to share how loan terms (like the age-65 write-off) affect their financial planning.
  • Submission Deadline: You must complete the questionnaire by 5:00 pm on Tuesday, 14 April 2026.
  • Who can participate: Anyone aged 16 or over with personal experience of considering, taking out, or repaying a student loan is encouraged to contribute.
  • UK Parliament +4
OP posts:
Original poster
Sammy900 · 16/03/2026 09:36

another one:

"Abolish interest charges on student loans"

OP posts:
Original poster
Sammy900 · 16/03/2026 09:26

If like me, you do feel that you were mis-sold a student loan or that it has unfair and ridiculous terms and interest rates / conditions and want your situation to be reviewed on an individual merit. There are a few things you can do I've learned...

Email your local PM and tell them and ask them to represent you and bring it up for debate in parliament or refer you to the PHSO

Email the Treasury Committee

Appeal to SLC - has anyone ever done this?? What was the outcome? I'm tempted

Complain to SLC - again has anyone ever done this - what did they say? I suspect currently we wouldn't get far with them - but parliament maybe as its all up for review again and they've admitted its a mess

There are a few government petitions out there to share amongst your peers and sign

"Write off all Plan 1 student loans after 25 years"

and others have a look

Does anyone have any other advice? Interested to hear about people who have complained or appealed to SLC

OP posts:
Hillarious · 16/03/2026 08:34

I don’t have an issue with my three children having their loans. They wouldn’t have been able to go to university without them. But what all the discussions have highlighted for me is that my DD is paying back two separate loans -UG and PG - and having recently retired now is the time for me to pay off the Master’s loan for her and put her on the same footing as my two DS with just their UG loans. The Master’s loan is obviously smaller and with lump sums manageable for me.

Needlenardlenoo · 16/03/2026 07:16

I don't want to make the thread about teaching (because loans are an important topic to discuss and there are plenty of threads about teaching) but the loans are a government backed system, as is the state education system, and the latter is running at a.high level of vacancies so clearly the terms and conditions aren't THAT attractive.

I enjoy teaching myself, but when I got my degree in the 90s it was cheap, and I own my house.

OhDear111 · 15/03/2026 18:48

Just to repeat and be ultra boring: NO- ONE is required to pay off the loan! Teachers start off not paying much per annum on payments. Like everyone else, when they move up, they pay more. It’s not a worse job than others have at all. Heads can earn well in excess of £100,000. Like most careers, there’s a prune to pay early on but many I know love teaching and certainly love the holidays. I think golden hellos should be added to the loans if teachers don’t stay. It’s just wasting money.

OhDear111 · 15/03/2026 14:06

@TonTonMacoute Why? Do you think students should borrow at commercial rates with commercial conditions attached? It’s the tax payer who cops for the loans up front and the non paid off loans. I agree terms should not be changed but the system is not suspicious. Millions have the loans and earn better money because they have a degree. If we want a return to far fewer going to university, it would be unbelievably cheaper for everyone.

OhDear111 · 15/03/2026 14:03

@sillyrubberduck It’s still tied to earnings though. Low earnings, low repayments.

IDontHateRainbows · 15/03/2026 13:31

OrangeBlossomsinthesun · 15/03/2026 13:24

I took the very first student loan in 1996 i think it was, the very first time they were offered. I deferred repayment every year because I earned under the threshold (tefl teacher abroad) and after about 20 years they wrote it off. I never paid any of it. But it sounds like they have become awful debt traps since.

I had a half loan half grant thing in 1995, think it was the last or last but one year of grants. So loans were around before 96.

OrangeBlossomsinthesun · 15/03/2026 13:24

I took the very first student loan in 1996 i think it was, the very first time they were offered. I deferred repayment every year because I earned under the threshold (tefl teacher abroad) and after about 20 years they wrote it off. I never paid any of it. But it sounds like they have become awful debt traps since.

sillyrubberduck · 15/03/2026 13:21

Massively unfair, I agree. The interest on plan 2 is a rip off. Outrageous!