The Money Gains Podcast Why Your Student Loan Goes UP Even When You're Paying - Ollie Gardner Rethink Repayment
Feb 5, 2026
Ollie Gardner, founder of Rethink Repayment campaigning for UK student loan reform. He explores why balances rise despite payments. Short takes cover Plan 2 rules, interest mechanics that can outpace repayments, the £66k break-even point, emigration to escape debt, and policy fixes like capping interest and changing thresholds.
AI Snips
Chapters
Transcript
Episode notes
How Plan 2 Repayments And Interest Work
- Plan 2 loans start repaying the April after graduation and charge 9% of income above £28,470.
- Interest rises with earnings from RPI to RPI+3%, reaching 6.2% above ~£51,000, which fuels rising balances.
Why Balances Rise Despite Repayments
- Above-inflation interest means loan balances can grow even while you make repayments.
- You need roughly £66,000 income to stop a typical £50k balance rising because repayments must exceed interest.
Interest Is Outpacing Repayments
- In one year graduates paid £5bn while interest added was ~£15bn, so net balances rose dramatically.
- Much of that added interest is 'above inflation' and inflates future write-offs and repayments.