Martin Lewis criticizes the UK government's freeze on student loan repayment thresholds, arguing it unfairly impacts graduates by increasing their repayment amounts.
Martin Lewis, a renowned financial expert, has publicly condemned the UK government’s proposed plans to freeze the repayment threshold for Plan 2 student loans, terming it a 'breach of natural justice.' He highlighted that if the freeze is enacted, individuals who graduated within the last 15 years will face increased deductions from their salaries. Graduates in well-paid jobs, already managing high living costs, could find their take-home pay significantly affected by these changes.
In his comments shared on social media platform X, Lewis elaborated on the implications of freezing the repayment threshold. He pointed out that as average earnings and inflation continue to rise, more graduates will earn beyond the existing repayment threshold. This scenario would result in a higher proportion of their incomes being diverted to loan repayments, which he characterized as an unjust financial burden on recent graduates.
The broader context of Lewis's statement raises key concerns about the fairness of the government's approach to student debt management. With many graduates already facing economic pressures, the potential for increased repayment amounts under the proposed plan may exacerbate financial strain, prompting discussions on the need for reform in how graduates manage their student debt in relation to their earnings.
