Nick Ferrari - The Whole Show Are student loans changes coming?
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Feb 26, 2026 
Alison McGovern, Local Government and Homelessness Minister, outlines government funds and policy measures to tackle rough sleeping. She discusses new targets to halve long‑term rough sleeping and steps to prevent homelessness. The conversation also touches on differences between official counts and charity estimates, and how funds will be deployed to meet prevention goals.
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Plan 2 Student Loans Create A Debt Trap
- Student loans for Plan 2 borrowers (2012–2023) function like a debt trap because interest (RPI+3%) accrues during study and repayment is income-contingent.
- Madeline Ross and Aggie Schaumbrae note many graduates' balances grow despite repayments; repayment threshold freeze and high interest push many beyond 30-year write-off.
Ministers Caution That Simple Rate Tweaks Can Harm The Poor
- Education Secretary Bridget Phillipson warns simplistic fixes (e.g., switching to CPI) may have unintended fairness consequences.
- Ministers stress the system's complexity and that changes can sometimes hurt less well-off students.
Only High Earners Can Actually Pay Down Loans
- High interest and income-contingent repayments mean graduates need very high salaries (~£66,000) to actually reduce principal.
- Madeline Ross calculates graduates often never outpace interest and rely on 30-year write-off, creating distributional concerns between higher and lower earners.