Daily Politics from the New Statesman Student loans: Should graduates sue the government?
Jan 30, 2026
A deep dive into Britain’s student loan crisis and whether graduates have grounds to sue over mis-sold debt. A clear rundown of how loan policy and fees went off track. An exploration of Blue Labour and its influence on current Labour politics. A concise tour of other Labour factions and how informal networks shape MPs. A look at Nigel Farage’s political instincts and why local government reorganisation matters.
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How Student Loans Were Framed As Progressive
- The 2012 student‑loan design aimed to make loans progressive by charging higher interest on wealthier graduates to subsidise poorer ones.
- Rachel Cunliffe argues the policy intended social progress but failed as universities all charged the maximum and the system became unaffordable.
Repayments Balloon With Rising Salaries
- Promises about repayment felt small at introduction but scale up dramatically with typical mid‑career salaries.
- Rachel shows examples where repayments at £50k or £70k far exceed early expectations, undermining the 'graduate tax' claim.
Get Legal Advice Before Suing Over Loans
- Challenging the government legally is possible but was judged weak when raised in 2015, so seek specialist legal advice first.
- Rachel points listeners like 'Sam' to consult money‑saving experts or lawyers before pursuing group litigation.