Parliamentary Inquiry into England Plan 2 Student Loans

A parliamentary inquiry into England's student loan system has opened amid mounting public concern over the value of a university degree and anger from graduates who describe being used as "cash cows." The Commons Treasury Select Committee heard evidence from experts and campaigners who criticized the system's high interest rates and recent changes to repayment terms, with one former government reviewer comparing the situation to past financial mis-selling scandals.

The inquiry focuses on Plan 2 loans, taken out by undergraduates in England and Wales between 2012 and 2023. Under this system, graduates repay 9% of their income above a set threshold. A central point of contention is the government's decision, announced in the autumn 2025 budget, to freeze that repayment threshold at £29,385 for three years from April 2027. Critics argue this freeze, combined with above-inflation wage growth, will pull more graduates into repayment earlier and increase their total costs.

Experts testifying before MPs highlighted a growing sense of injustice. Ollie Gardner, founder of the graduate campaign group Rethink Repayment, described an "intergenerational crisis," stating that freezing...