Overview
- New YouGov polling shows 44% of Britons support forgiving some or all student debt, including 55% of graduates, with strong opposition to above‑inflation interest.
- Chancellor Rachel Reeves has confirmed a three‑year freeze of the Plan 2 repayment trigger at £29,385 from April 2027, a move she calls fair and proportionate that is forecast to raise about £380m a year.
- Under Plan 2, graduates repay 9% of earnings above the threshold with interest set at RPI plus up to 3 percentage points and a 30‑year write‑off, leading many to see balances grow; rates peaked around 8% in August 2024.
- Former OfS director John Blake says the system is "doomed" and suggests a graduate tax, while the National Union of Students and other experts press for reforms to interest and thresholds.
- MoneySavingExpert’s Martin Lewis has urged the Chancellor to rethink the threshold freeze, and the issue is gaining political traction ahead of a Greater Manchester by‑election this month.