Student Loans. The graduate tax.
English student loans have become a lifelong tax for education. Even as you pay, what you owe gets higher.
THE GIST ON STUDENT LOANS: "The Graduate Tax"
What is happening to the debt?
In 2024-25 the interest added was in the region of 15 billion pounds, when only 5 billion was paid off. So even as you pay, the amount you owe goes up.
Why is the pay-off so weak?
The early career payoff is almost non-existent. The minimum wage has risen massively while entry-level graduate jobs haven't, so the graduate premium has basically gone. Investing in yourself has resulted in an extra permanent tax for life, which discourages aspiration. Why push for a higher paying job when you're just going to be worse off?
Who pays in the end?
It squeezes the spending power of a whole section of the workforce, and ultimately the economy suffers. When the debt is written off after 40 years, it doesn't vanish. It's paid by you and me, the taxpayer.
Is a degree still worth the debt?
Your take. One tap, then see how everyone else voted.
Quick answers
How much interest was added to English student loans in 2024-25?
In the region of 15 billion pounds, against about 5 billion paid off.
Why has the graduate premium gone?
Minimum wage has risen a lot while entry-level graduate jobs have not.
Who pays when the debt is written off?
The taxpayer, after 40 years.
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