In a heated debate ahead of a Commons Westminster Hall discussion, Labour MPs have expressed their outrage over the current student loan system affecting graduates in England and Wales. They accuse the government of allowing students to be "outrageously scammed," as they face the pressures of escalating debt without adequate support or a path to relief. This comes after Education Secretary Bridget Phillipson acknowledged significant issues within the system.

Currently, approximately 5.8 million students have taken out 'plan 2' loans since their inception in 2012. Many of these graduates are finding that the monthly repayments, while diligent, do not even cover the interest accruing on their loans, resulting in an overall increase in their debt over time. This situation exacerbates the financial strain on young professionals and has led to urgent calls for reform from various MPs who are frustrated with what they perceive as a lack of action from the government.

The catalyst for their outcry can be traced back to a recent decision made by Chancellor Rachel Reeves to freeze the salary threshold at which repayment of loans begins, making it difficult for graduates to manage their finances effectively. This decision has identified a crucial point of contention, leading to broader discussions about the equity and sustainability of the student loan system in the UK, as alumni collectively call for change to prevent further financial hardship among future generations of students.