MPs accuse student loan system of “mis-selling” generation of graduates

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  • Post last modified:7 July 2026

MPs from the Treasury Committee have released a new report which accuses the government of mis-selling student loans, pointing out that comparisons to mobile phone bills or cinema tickets were not reflective of the true cost of repayments. The MPs also want Chancellor Rachel Reeves to scrap plans to freeze the repayment threshold for people on the expensive Plan 2 loans. As things stand, it’ll stay at £29,385 from 2027 to 2030, instead of going up with inflation, meaning many graduates will end up paying back more. This choice to freeze – which will increase students’ repayments year on year if…

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