The Story An almighty student debt reckoning has arrived
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Feb 16, 2026 Mary Downer, Money reporter at The Times who investigated the UK student loan system. She reveals why many graduates see debts balloon despite repayments. Short, sharp accounts of punitive RPI plus 3% interest, frozen repayment thresholds, and who is worst hit. Discussion of life impacts like mortgage barriers and whether reforms or accounting fixes can repair a broken social contract.
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A Graduate's Debt Ballooned Despite Repayments
- Patrick borrowed £42,000 and saw his debt grow to about £72,000 despite regular repayments.
- He paid ~£3,000 last year but the loan increased by £5,000 due to interest.
Loans Promised To Feel Like A Phone Bill
- Students were told loans would feel like a phone bill and barely noticed.
- That message misled many who now face hundreds of pounds monthly as salaries rise.
Most Repayments Don’t Reduce Principal
- Two-thirds of repayors are seeing their loan balances increase because interest outpaces repayments.
- In one year, £15.2bn was added in interest while only £5bn was repaid.