Want a fairer student loans system?
The current student loan repayment system is not fit for purpose.
That's why we're fighting for a fairer system that will help young people better invest in their futures and the economy.
Our demands
A fairer system to help young people invest in their futures.
Restore the
threshold
The Plan 2 threshold should be re-instated to the level it would have been without repeated freezes.
✓ Reverses unfair changes to loan terms
✓ Helps lowest earning graduates
Reduce The repayment Rate
9% → 5%
This will address the punishingly high marginal tax rates faced by graduates.
✓ Improves work incentives
✓ Helps young people invest in their futures
Cap Interest at CPI
INFLATION
No-one should repay more than they borrowed in real terms for an educational loan. Capping interest at CPI going forwards will help to address this.
✓ Prevent snowballing debt
✓ Cap balances in real terms going forwards
As featured in
The Crisis
In Numbers
51%
marginal tax rate
Graduates earning over £50,270 keep less than 50p of every extra £1 they earn. This creates an even bigger tax on ambition.
8%
Punitive Interest
Graduates were charged up to 8% interest on their Plan 2 loans in 2024, contributing to soaring loan balances.
£53,000
Debt Sentence
Graduates leave with 4-5x more debt on average than those in 2009. This will hold back a whole generation.
How We Got Here
1998
The Beginning
Tuition fees introduced at £1,000 per year.
2006
The Increase
Fees raised to £3,000.
2012
The Tripling
Fees explode to £9,000 and Plan 2 introduced with interest rates
up to RPI + 3%.
2023
Plan 5 introduced
Interest capped at RPI in return for lowering threshold and increasing repayment term.