The government has been accused of mis-selling loans to students in a new report by a group of MPs.
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Plan 2 loan repayments in England and Wales were compared to the price of cinema tickets, mobile phone and internet contracts - but the true cost was much, much higher.
More than five million students on Plan 2 were mis-sold loans between 2012 and 2023, according to the Treasury Committee, who urged politicians to fix the “complex, unfair and broken” system.
The government said it’s taking “decisive action” to make the system “fairer for students” in a financially sustainable way.
In April, it announced a 6% cap on loan interest rates - but has so far resisted calls to unfreeze the repayment threshold.
The Student Loans Company said it “recognises the importance” of giving people “access to clear, accurate and timely information about student finance”.
In this episode of the breakdown, we speak to Ollie Gardner, founder of Rethink Repayment, and explore whether there is a ‘quick fix’ for the government, or if ministers need to rethink student loans altogether.
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