Student Loan Repayment Plans

Debate between Jas Athwal and Natasha Irons

Wednesday 25th February 2026 Westminster Hall

[Jas Athwal]

I agree with my hon. Friend; we must be clear where the blame lies. It is not fair that a system created by one party and enabled by another is now presided over by my own party, who will clear up the mess. The system burdens millions, such as my hon. Friend, with balances they may never clear. It follows the letter of the principle while violating its spirit. Many believe that the plan 2 loans system is predatory, regressive and kills graduates’ ambitions with stressful spiralling interest.

[Natasha Irons (Croydon East) (Lab)]

I have enjoyed the perks of being an elder millennial, graduating in 2004 as a plan 1 student. The retrospective changing of the threshold, burdening plan 2 students with debt, is unbelievable, as is linking interest to the retail price index not the consumer prices index, which the Office for Budget Responsibility has discredited. Does my hon. Friend agree that addressing fundamental fairness means changing those structural factors that came in after people signed up to the agreements?

[Jas Athwal]

I will later make the point about the structural imbalance that needs to be corrected. This situation is not just stressful for students; it should also concern the Treasury. Under plan 2 loans, graduates repay 9% of income above £28,470 this tax year. From April, that threshold rises to £29,385. Interest accrues from the moment the first payment is made to a university, long before students have graduated.

Oral Answers to Questions

Debate between Jas Athwal and Natasha Irons

Monday 26th January 2026 Commons Chamber

[Natasha Irons (Croydon East) (Lab)]

7. What steps he is taking through the roll-out of youth hubs to help support young people into education, training and employment.

[Jas Athwal (Ilford South) (Lab)]

17. What steps he is taking to support the roll-out of youth hubs.