A nursing student has publicly shared her distressing experience of watching her student loan debt escalate dramatically, despite diligently making monthly repayments. Helen Lambert, who originally borrowed £57,000 in 2021 to fund her NHS nursing studies, has seen her total debt balloon to £77,000—an increase of £20,000—even after repaying £5,000 over time.
Mounting Debt Despite Consistent Payments
Helen has been making regular payments of approximately £145 per month, totalling around £5,000 since she began repaying her loan. However, with interest rates sitting at eight per cent, an additional £400 is being added to her balance each month. This means her repayments are not even covering the accruing interest, let alone reducing the principal amount she originally borrowed.
"A Pointless Debt"
In an interview with the Guardian, Helen expressed her frustration, stating: "It is so disheartening to have this level of debt hanging over you with no achievable way to clear it or even reduce it while they add on upwards of £400 a month in interest." She further explained that while her student loan is not considered 'bad debt' in terms of affecting her credit score for other financial loans, the monthly payments feel futile.
"My payments don't go against the principal balance – they are not even making a mark on the interest accrued," she added. "Each month I'm forced to pay a sizeable sum to a pointless debt."
Government Response and Policy Changes
The Department for Education has responded to concerns, emphasising their commitment to a sustainable student finance system. A spokesperson stated: "This government is making fair choices to make sure the student finance system is sustainable – protecting taxpayers and students."
They highlighted upcoming changes, including raising the Plan 2 student loan repayment threshold for the next academic year. This adjustment means that a graduate earning £30,000 would repay only about £4 per month in 2027–28. Additionally, the government noted that the interest rate freeze will not impact anyone who started their course after August 2023, and lower-earning graduates will continue to be protected, with loans and interest written off after 30 years.
Calls for Reimbursement
Helen also voiced criticism regarding the lack of support for students from the 2017-20 cohort, saying: "I find it outrageous that students of the 2017-20 cohort were not reimbursed." This sentiment reflects broader concerns among many graduates who feel trapped by escalating debt despite their efforts to repay.
The situation underscores ongoing debates about the fairness and sustainability of the student loan system in the UK, particularly for those in essential public service roles like nursing.
