As the cost of higher education continues to rise, many graduates in the UK are finding themselves trapped in a never-ending cycle of ballooning student debt. One nurse, Helen Lambert, is a prime example of this alarming trend.
Lambert borrowed £57,000 to fund her studies at Edinburgh Napier University, starting to repay her student loan in 2021 after beginning work as an NHS nurse. Despite dutifully making monthly payments of around £145, her total outstanding debt has skyrocketed to over £77,000 – an increase of £20,000.
This is due to the exorbitant interest rates, which have reached as high as 8% during her repayment period. Lambert laments, “It is so disheartening to have this level of debt hanging over you with no achievable way to clear it or even reduce it while they add on upwards of £400 a month in interest.”
Tragically, Lambert’s situation is not unique. Millions of graduates across the UK are trapped in a similar predicament, with their loan repayments dwarfed by the relentless accumulation of interest. Even Nadia Whittome, a 29-year-old Labour MP, has seen just £1,000 shaved off her £49,600 student debt over the past six years.
The recent budget changes have only exacerbated the problem, with the salary threshold for plan 2 loan repayments frozen at £29,385 until 2030. This means that as wages rise, more graduates will be required to pay 9% of a larger portion of their earnings towards their student loans.
Experts suggest that for most plan 2 borrowers, making extra repayments is not a wise move, as they are unlikely to fully repay the loan before it is written off after 30 years. The focus should instead be on managing the debt and exploring options for potential refunds if their annual income falls below the yearly threshold.
The growing calls to rebrand student loans as a “graduate tax” reflect the widespread sentiment that the current system is unfair and unsustainable. As the government defends its “fair choices” to ensure the system’s viability, the plight of graduates like Helen Lambert serves as a stark reminder of the urgent need for reform.
