British graduates are increasingly speaking out against the structure of the UK student finance system as data reveals millions of loan balances are rising despite ongoing repayments. According to reports from The i Paper, over 5.3 million student loans have grown in value since borrowers began making mandatory repayments.
For many professionals, including those in high-demand fields like medicine, the debt burden has become a source of significant anxiety. Dr. Amber Savary-Trathen, an internal medicine doctor in Brighton, revealed that her original loan of £52,900 has ballooned to £67,000, despite seven years of payments. “I owe more now than I did when I finished studying,” she noted, describing the interest rates as a “punishment” for pursuing higher education.
The financial strain is exacerbated by the current interest rate environment. Under the government’s “Plan 2,” which applies to those who started university between 2012 and 2023, interest rates currently range between 3.2% and 6.2% depending on salary levels. While the government capped rates at 6% following a public backlash, many borrowers remain concerned about the long-term viability of the system.
Campaigners, including the Good Growth Foundation, are calling for an immediate increase in the repayment threshold from £29,385 to £33,542 to alleviate pressure on graduates. They argue that linking annual increases to median graduate earnings would help restore the real-term value of the threshold. However, Chancellor Rachel Reeves has confirmed a freeze on the threshold until 2030.
A government spokesperson defended the current framework, stating, “We inherited the current system and have taken steps to make it fairer—including raising the repayment threshold for the first time since 2021 and capping maximum interest rates.” Officials emphasized that the system is designed to protect lower earners, with any remaining balance written off after 30 years.