Graduates Feel Used as ‘Cash Cows’ to Fund Pension Triple Lock, MPs Told
Graduates with student loan debts told an official inquiry they feel used as “cash cows” to fund measures benefiting older people, including the state pension triple lock. The Commons Treasury select committee heard testimony from seven experts on Tuesday, including campaigner Ollie Gardner who described the situation as an “intergenerational crisis.” Gardner cited the example of a 33-year-old NHS doctor whose loan had grown by £38,000 in interest. Philip Augar, who led the 2019 government review of post-18 education, criticized what he called “almost sneaky” changes to loan terms and compared the situation to car finance and PPI mis-selling scandals. The current row was triggered by Chancellor Rachel Reeves’ decision to freeze the salary repayment threshold for “plan 2” loans at £29,385 until 2030. A government spokesperson defended the system, stating that steps have been taken to make it fairer, including raising the threshold for the first time since 2021 and capping interest rates. The spokesperson added that the system protects lower-earning graduates with repayments linked to income and debt write-off at the end of the loan term.
What’s reported
Graduates described feeling used as “cash cows” to fund the state pension triple lock and other measures for older people.
The Commons Treasury select committee took evidence from seven experts on Tuesday.
Ollie Gardner, founder of Rethink Repayment, called the student loan situation an “intergenerational crisis” and gave the example of a 33-year-old NHS doctor who had £38,000 of interest added to their loan.
Philip Augar, who led the 2019 review of higher education funding, criticized “retrospectively changing the terms in quite a complicated, almost sneaky way, bit by bit.”
Augar compared the loan terms to car finance and PPI mis-selling scandals.
The row followed Rachel Reeves’ decision to freeze the plan 2 loan repayment threshold at £29,385 until 2030.
A government spokesperson said the government has taken steps to make the system fairer, including raising the threshold for the first time since 2021 and capping maximum interest rates.
Conflicting accounts
The article includes contrasting views: student representatives and critics described the loan system as unfair and harmful, while a government spokesperson stated that steps have been taken to make the system fairer and that it protects lower-earning graduates.
Open questions
The article does not specify what specific reforms the government is considering or whether the freeze on the threshold will be reversed.
Key figures
Ollie Gardner (founder of Rethink Repayment)
Philip Augar (led 2019 review of higher education funding)
Rachel Reeves (Chancellor)
Unnamed government spokesperson
Unnamed NHS doctor (example given by Gardner)
Sources: The Guardian
