Story perspectives

Graduates Struggle with £87K Debt Amid Plan 2 Reforms

2/23/2026

Summary

Story summary

A recent graduate owes £87,264.76 and makes minimal payments under the Plan 2 loan system introduced in 2012.
Experts say Plan 2's high interest rates and repayment terms leave many graduates unable to fully repay, harming living standards.
The Conservative government proposed reforms to Plan 2, including freezing repayment thresholds and limiting interest rates.
Labour acknowledges flaws, prioritizes maintenance grants, and calls for better financial education and apprenticeships.

1 of 1

Story summary

A recent graduate owes £87,264.76 and makes minimal payments under the Plan 2 loan system introduced in 2012.
Experts say Plan 2's high interest rates and repayment terms leave many graduates unable to fully repay, harming living standards.
The Conservative government proposed reforms to Plan 2, including freezing repayment thresholds and limiting interest rates.
Labour acknowledges flaws, prioritizes maintenance grants, and calls for better financial education and apprenticeships.