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Pressure Mounts on UK to Reform Graduate Loan System

2/12/2026

29 2 Full Breakdown

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Story summary
  • The UK Government faces pressure to reform Plan 2 loans for graduates from 2012 to 2022 due to high interest and a frozen threshold.
  • Health Secretary Wes Streeting acknowledged the need for debate on the fairness of the system.
  • Campaigners argue that freezing the repayment threshold will drive higher repayments and is unjust.
  • Economists say reducing interest rates or shortening repayment periods could ease costs, but would burden the Treasury.