"The disagreement is focused on the estimated 5.8 million people who took out a student loan between September 2012 and July 2023. For many of these graduates, everything they hand over from their salary is dwarfed by the interest that is slapped on their debt every month. What prompted the latest row is Reeves's decision to freeze the salary threshold forrepayments for plan 2 student loans for three years which means many graduates will now have to pay even more."
"A fairly technical-sounding change to student loans tucked away in last November's budget has become the catalyst for an increasingly bad-tempered row pitting the UK consumer champion Martin Lewis against the chancellor, Rachel Reeves. In one interview, Lewis the founder of MoneySavingExpert.com, who boasts a vast following said he did not think the planned change to repayment terms was a moral thing. Reeves has defended herself and insisted the student loans system is fair,"
A November budget change to student loans has triggered a public dispute between consumer champion Martin Lewis and chancellor Rachel Reeves. A YouGov poll finds 44% of Britons want some or all student debt written off, while 41% want graduates to repay as currently. The change affects an estimated 5.8 million who took loans between September 2012 and July 2023, many of whom see interest outstrip repayments. Reeves froze the plan 2 repayment salary threshold at 29,385 from April and will keep it unchanged until 2030. Plan 2 graduates repay 9% of earnings above the threshold, so the freeze pulls more people into repayment and increases amounts repaid when salaries rise.
Read at www.theguardian.com
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