Martin Lewis Condemns Student Loan Repayment Threshold Freeze
Martin Lewis, the prominent financial expert and BBC and ITV personality, has launched a fierce critique against Labour Chancellor Rachel Reeves. The controversy centers on a government decision to freeze student loan repayment thresholds, a move that impacts an estimated 5.8 million individuals who took out student loans between 2012 and 2023.
Graduates Face Mounting Debt Burdens
Graduates are confronting staggering debts, with some figures reaching nearly £100,000 and continuing to rise. One 24-year-old graduate shared her distressing experience with the Guardian newspaper. She graduated with a debt of £73,814, which has since ballooned to £93,793 and is projected to soon exceed £100,000.
"It's overwhelming to realise that, even though I'm paying every month, it doesn't make a difference to what I owe," she expressed. "It takes away all hope that you'll ever be able to pay it off. This is going to be with me for 30 years ... I'll never be able to get rid of it, no matter how much I pay towards it."
Second Graduate Highlights £99,987 Debt
Another graduate reported an outstanding student loan debt of £99,987. "I worked out once using an online calculator that I'll repay approximately £100,000 to £150,000 over the 30 years of my loan," they disclosed.
"I feel deeply, unavoidably betrayed by the fact that the older generations pay no 'graduate tax', and yet for wanting to better myself, I am forced to pay a massive chunk out of my income if I work harder to begin saving for a home."
Martin Lewis Calls Policy "Immoral" and a "Breach of Contract"
Martin Lewis, aged 52, did not mince words in his assessment of the policy change. He stated that he did not believe the planned alteration to repayment terms "was a moral thing."
"I do not think it is a moral thing for you to do to be freezing the repayment threshold in this way ... You didn't say the terms were variable. This isn't right. Please have a rethink," Lewis asserted.
Lewis further argued that students had entered into a contract, and the government was "unilaterally changing the terms." He drew a parallel with commercial practices, stating, "You tell companies they can't do that – you shouldn't do it either ... It would not be allowed for any commercial lender, it would go against all forms of consumer law."
He emphasized that freezing the salary threshold "is a breach of contract – it's a breach of promise," underscoring the profound implications for millions of graduates across the nation.
