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Story perspectives

Dropouts Owe £5.9bn; Powell Calls for Loan Review

8/6/2026

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Story summary
  • 191,500 dropouts in England, Wales and Northern Ireland are repaying over £5.9 bn in student loans.
  • First-year leavers from 2020-21 owe about £30,000 on average, rising to £62,000 after interest.
  • Lucy Powell called the system “egregious” and announced a review of Plan 2 loan interest, capped at 6 % and repaid at 9 % above £29,385.
  • Over 120 MPs and peers, led by Rethink Repayment, wrote to Chancellor John Healey urging an urgent review.