Paying off a student loan is a Sisyphean challenge. I started university in 2016 and since then, my loan has gained over £20,000 in interest. I am now 28 and gainfully employed in London, but despite monthly repayments, it keeps on growing. When I was applying to university, there was only one funding option for those who didn’t pay tuition fees upfront: the Plan 2 loan. Between 2012 and 2023, 5.8 million people took out this loan plan. Most now say they were not adequately informed that the more successful they were later in life, the higher their interest rates would be.
I borrowed £48,000 in total for my undergraduate degree, but that figure has ballooned to £68,000. The interest rate has been perniciously high over the past few years and is currently up to 6.2 per cent. Some Plan 2 holders can expect to pay back double what they borrowed, and debate is swirling over whether the system is a stealth tax on graduates, or a reasonable price for an education.
