Martin Lewis, a prominent consumer advocate, has found himself in a heated dispute with UK Chancellor Rachel Reeves over student loans. The row centers on the government's decision to freeze the salary threshold for plan 2 students for three years, which means that millions of graduates will now have to pay more in loan repayments.
Lewis has taken issue with the move, calling it "not right" and a "breach of contract". He argues that the change was not announced at the time when students took out their loans and therefore they had no choice but to accept the original terms. Lewis believes that freezing the salary threshold is unfair and will have a disproportionate impact on those who are already struggling to make ends meet.
Reeves, however, has defended her decision, saying it's "not right" that those who don't attend university should bear all the cost of financing others' education. She claims that if graduates earn high wages, they'll pay back more quickly, and the loan will eventually be written off. The Chancellor also cited the need to make sure the student finance system is sustainable.
The public is divided on the issue, with over four in ten people saying the government should write off some or all of the debt. However, 41% believe graduates should have to pay back their loans as currently.
The National Union of Students has condemned the salary threshold freeze, stating it could leave new graduates struggling to afford basic necessities like food and rent. The Institute for Fiscal Studies estimates that millions of plan 2 people will repay an extra £93 in 2027-28, rising to £259 by 2029-30.
As the debate continues, Lewis is urging plan 2 graduates to write to their MPs to express their dissatisfaction with the government's decision. This could potentially become a major issue at the next general election, with some fearing it could harm Labour prospects. The YouGov poll found that many people are still unsure about how the bill should be financed and who should pick up the tab.
Ultimately, the question remains: is the current system fair, or does the government have a moral obligation to write off some or all of the debt?
Lewis has taken issue with the move, calling it "not right" and a "breach of contract". He argues that the change was not announced at the time when students took out their loans and therefore they had no choice but to accept the original terms. Lewis believes that freezing the salary threshold is unfair and will have a disproportionate impact on those who are already struggling to make ends meet.
Reeves, however, has defended her decision, saying it's "not right" that those who don't attend university should bear all the cost of financing others' education. She claims that if graduates earn high wages, they'll pay back more quickly, and the loan will eventually be written off. The Chancellor also cited the need to make sure the student finance system is sustainable.
The public is divided on the issue, with over four in ten people saying the government should write off some or all of the debt. However, 41% believe graduates should have to pay back their loans as currently.
The National Union of Students has condemned the salary threshold freeze, stating it could leave new graduates struggling to afford basic necessities like food and rent. The Institute for Fiscal Studies estimates that millions of plan 2 people will repay an extra £93 in 2027-28, rising to £259 by 2029-30.
As the debate continues, Lewis is urging plan 2 graduates to write to their MPs to express their dissatisfaction with the government's decision. This could potentially become a major issue at the next general election, with some fearing it could harm Labour prospects. The YouGov poll found that many people are still unsure about how the bill should be financed and who should pick up the tab.
Ultimately, the question remains: is the current system fair, or does the government have a moral obligation to write off some or all of the debt?
. I mean, come on Rachel Reeves, you can't just pull this out of thin air and expect everyone to be okay with it 
. The salary threshold freeze is literally setting students up for financial disaster, especially those who are already struggling to get by 
. I'm all about fiscal responsibility, but this feels like a cruel joke 
. And don't even get me started on the whole 'you'll pay back more quickly' thing 
... that's just not how it works. I wish Martin Lewis would take some of his consumer advocacy mojo and really go after this one 
. We need to see some real change here, or else we're gonna be stuck with a generation of debt-ridden graduates 
.
. FREEZING THE SALARY THRESHOLD FOR PLAN 2 STUDENTS IS LIKE SLAPPING MILLIONS OF GRADUATES IN THE FACE 
. AND THE NATIONAL UNION OF STUDENTS MAKES A REALLY GOOD POINT THAT NEW GRADUATES COULD BE LEFT STRUGGLING TO AFFORD BASIC NEEDS LIKE FOOD AND RENT 
.
this is so not cool. the gov's decision is just plain unfair on plan 2 students. they're already struggling to make ends meet and now they'll be stuck with higher loan repayments? it's like, what's next? 
freezing wages for everyone? the chancellor's got some nerve saying those who don't attend uni should bear all the cost of financing others' education. that's just not right 
. i feel bad for those students who'll be affected by this change. they didn't even have a choice when they took out their loans! 
.
, and I'm not sure who's gonna come out on top in the end... probably just the gov 
. The government should really think about how this is gonna affect people who are already struggling to make ends meet. I mean, £93 in extra repayments every year? That's just a lot of money 
. And honestly, who do you think is gonna suffer the most - those who are making a decent wage or those who are barely scraping by 
.
! I mean, think about it, millions of people took out loans thinking they'd be earning enough to pay them back and now the gov's just gonna make 'em work even harder?! 
. I feel for them, they're already stressed enough without this added pressure.
they're like the student loan drama kings & queens! Lewis is saying freeze the salary threshold, Reeves is saying who pays for other people's uni lol like Reeves said if graduates earn high wages they'll pay back more quickly but what about those struggling to make ends meet? 
and btw did u know that millions of plan 2 peeps will repay an extra £93 in 2027-28? like, slow down! 
!
They're essentially sayin' we got taken for a ride when we signed up for student loans and now they're just gonna stick us with more cash? That's not right at all. I get that not everyone can afford uni, but why do the rest of us have to foot the bill? It's just not fair, you know? And what's with this 'you'll pay back more quickly' malarkey? Just 'cause you got a good job don't mean you should be burdened with debt for years. The government needs to step up and sort this out - it's gettin' out of hand! 