‘A tax on ambition’: graduates tell all to student loans inquiry
Graduates have shared their negative experiences with student loans during an inquiry by the Treasury select committee. Many expressed frustration over high interest rates and repayment terms, describing them as unreasonable and punitive. The inquiry has sparked calls for reform in the student loans system, particularly regarding the frozen salary threshold for repayments.
- ▪Over 52,000 graduates responded to the Treasury select committee's call for evidence regarding student loans.
- ▪92% of respondents felt that the interest rates and repayment terms were not reasonable.
- ▪The salary threshold for plan 2 loan repayments has been frozen at £29,385 until 2030.
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| Original publisher | The Guardian — World |
| Canonical URL | https://www.theguardian.com/money/2026/may/27/tax-on-ambition-graduates-tell-all-to-student-loans-inquiry |
| Publication time | Wed, 27 May 2026 16:01:03 GMT |
| Retrieval time | 2026-05-27T16:23:01.931Z |
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Students outside the Houses of Parliament campaign for student loan reform in February. Photograph: Sean Smith/The GuardianView image in fullscreenStudents outside the Houses of Parliament campaign for student loan reform in February. Photograph: Sean Smith/The GuardianStudent finance‘A tax on ambition’: graduates tell all to student loans inquiryTreasury select committee hears that interest rate and repayment terms are ‘extortionate’ and ‘not reasonable’Rupert JonesWed 27 May 2026 12.01 EDTLast modified on Wed 27 May 2026 12.15 EDTSharePrefer the Guardian on GoogleThousands of graduates have told an official inquiry their horror stories and bad experiences relating to student loans, underlining what the chair of an MPs’ committee called massive levels of “frustration and upset”.Amid an…
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