Chancellor Rachel Reeves' plan to freeze the repayment threshold for millions of graduates' student loans is being widely panned as a stealthy levy that unfairly targets young people with crippling debts. The proposed change would hold down the point at which repayments begin, so that as wages rise, more income faces a 9% loan repayment charge – a rate eerily similar to paying taxes.
Critics argue that this move is akin to treating student loans like tax, and that it's an unfair burden on those who are still paying off their debts. The argument that this policy will help fund the NHS is flimsy at best. Money used to repay student loans cannot simultaneously support public services. Instead of tackling rising healthcare costs, we're being asked to gamble our future tax rates on choices made decades ago.
It's not rational to expect teenagers to take on such significant financial risk without a clear understanding of what they're getting themselves into. Wealthier families have always been able to avoid this burden, while ordinary households are left to pick up the tab. Bankers can pay off their loans quickly, but teachers are stuck with decades' worth of debt.
A growing backlash against the current system is building, with a significant proportion of working-age graduates demanding that their debts be written off or forgiven entirely. Debt relief would be a good starting point, but it's only part of the solution. The real challenge lies in finding more equitable ways to fund public services – such as progressive taxation and using the state's balance sheet to invest.
Reeves' plan to extract cash from one generation via the student loan system is not only economically meaningless but also a cynical attempt to sidestep raising taxes. By relying on this dodgy math, ministers are able to claim that they haven't raised taxes – when in reality, it's just a different way of taking money from young people.
It's time for policymakers to take a more honest approach and find ways to fund public services that don't rely on unfair levies like the student loan system. Anything less would be nothing short of an evasion of responsibility.
Critics argue that this move is akin to treating student loans like tax, and that it's an unfair burden on those who are still paying off their debts. The argument that this policy will help fund the NHS is flimsy at best. Money used to repay student loans cannot simultaneously support public services. Instead of tackling rising healthcare costs, we're being asked to gamble our future tax rates on choices made decades ago.
It's not rational to expect teenagers to take on such significant financial risk without a clear understanding of what they're getting themselves into. Wealthier families have always been able to avoid this burden, while ordinary households are left to pick up the tab. Bankers can pay off their loans quickly, but teachers are stuck with decades' worth of debt.
A growing backlash against the current system is building, with a significant proportion of working-age graduates demanding that their debts be written off or forgiven entirely. Debt relief would be a good starting point, but it's only part of the solution. The real challenge lies in finding more equitable ways to fund public services – such as progressive taxation and using the state's balance sheet to invest.
Reeves' plan to extract cash from one generation via the student loan system is not only economically meaningless but also a cynical attempt to sidestep raising taxes. By relying on this dodgy math, ministers are able to claim that they haven't raised taxes – when in reality, it's just a different way of taking money from young people.
It's time for policymakers to take a more honest approach and find ways to fund public services that don't rely on unfair levies like the student loan system. Anything less would be nothing short of an evasion of responsibility.
. It's not fair at all, especially for those who are already struggling with huge debts 
. I get that the NHS needs funding, but can't they think of other ways to do it? Like raising taxes or investing in new sources of income 
. This is just a way for politicians to shift the blame and avoid making real changes 
. And honestly, it's not like student loans are a new thing - we've been paying them off for years now 
. It's time for policymakers to be more honest and find solutions that don't screw over one generation 
.
. It's like they want us to grow up in debt and struggle our whole lives. I mean, what's the point of having a 9% loan repayment rate, it's just gonna be a huge burden. And don't even get me started on the NHS funding, that's just a cop-out. They're not tackling the real issues, they're just passing the buck to us young people. It's so unfair, why should we have to pay for everyone else's mistakes? 
It's just common sense to have a repayment threshold, and 9% isn't that steep, right? 
I mean, we should be encouraging people to take on some financial risk, it's good for the economy. And what's wrong with treating student loans like taxes, they're basically a loan, aren't they? 
It's not that simple... or is it? 
. It's all just a massive scam to cover up the lack of real change...
. and what's with the 'we need to fund nhs' excuse? we can't even get our own healthcare system sorted 
. this plan is just another example of politicans dodgy math & trying 2 shift the blame on future gen 
it's not like it's based on anyone's actual life experience. I mean, teachers are still paying off their loans in their 50s 
it just doesnt add up.
let's get rid of these dodgy levers and find ways to fund our NHS that dont involve ripping off future generations 
.