Daily Politics from the New Statesman Why you'll never repay your student loan
Mar 17, 2026
Rachel Cunliffe, political journalist specialising in UK public policy and economics. She breaks down why student loan balances ballooned, how interest and frozen thresholds changed who repays. Short conversations about parliamentary inquiries, party positions and what reforms might actually help current graduates.
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Submit Evidence To The Treasury Inquiry
- Submit evidence to the Treasury Select Committee's call for submissions by 14 April if you have views or experiences with student loans.
- Rachel Cunliffe says the survey covers interest, retrospective changes and fairness and helps MPs gather evidence.
High Interest Rules Make Student Debt Grow Fast
- The average debt at graduation is around £53,000 and interest rules tie rates to RPI plus up to 3 points, making student debt grow faster than other borrowing.
- Cunliffe notes graduates need salaries around £66k to start reducing capital rather than interest.
Most Borrowers Likely Never Fully Repay
- The Augar review found over 70% of post-2012 borrowers were unlikely to fully repay under original terms; repayment terms were later extended to 40 years and interest reduced to RPI.
- That shifts repayments into people’s 50s and 60s, affecting retirement saving.