Daily Politics from the New Statesman Student loans have screwed over a generation
Jan 20, 2026
Rachel Cunliffe, a political journalist at New Statesman, dives into the ramifications of the 2010 decision to triple university tuition fees in England. She and host Oli Dugmore analyze how this financial burden has radicalized a generation of graduates. They discuss the punishing interest rates, the political fallout for the Lib Dems, and the hidden costs of student debt on life choices like home buying and starting a family. Rachel also explores potential reforms, including graduate taxes, to remedy the inequities of the current system.
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Protesting Fees Was A Personal Awakening
- Oli Dugmore describes bunking off school in 2010 to join the tuition-fees protests as his political awakening.
- He frames that protest as the moment he realised those policy changes would harm his cohort.
Interest Rises As Your Income Grows
- The student loan interest is tied to RPI plus a graduate's earnings, which can raise rates as incomes rise.
- That design perversely penalises higher earners and discourages paying the debt off quickly.
A Narrowly Targeted Burden
- The policy created a narrow demographic that bears the brunt: aspirational middle-class graduates.
- Wealthy families or very low earners escape the pain, leaving a regressive burden on mid earners.