Almost half of Britons think some or all student debt should be written off

Nearly half of Britons say the government should write off some or all of student debt, and most are opposed to above-inflation rates of interest on student loans, according to a new survey.

Graduates on the student finance plan two scheme have criticised in recent weeks how their monthly repayments are stunted by soaring interest charges and rates of inflation.

A new YouGov poll of more than 2,000 people last week revealed that 44 per cent of Britons want the government to forgive some or all student debt, including 55 per cent of graduates. Of those in favour, 36 per cent support the student debt being written off entirely.

The vast majority of Britons also think that tuition fees in England and Wales are too expensive, with 68 per cent deeming the £9,000 a year as too high. Additionally, 63 per cent said taking a 9 per cent cut of graduates’ pay to repay student loans is too much.

Most also consider above-inflation rates of interest to be too much to charge graduates, with 76 per cent of people seeing interest rates of 6 per cent as too high, and 53 per cent saying interest rates should be harmonised across all plans.

But most people do not think university should be free, with just over half of Britons agreeing it should continue to be funded by students rather than the taxpayer.

Arthur Joustra, 27, graduated in 2022 with a loan debt of around £65,000. By April 2024, the debt had grown to £70,177.83. In the year leading up to April 2025, he paid more than £3,000 back – but finished the year with a debt of £72,320.58.

He told The Independent “the interest is never-ending”, adding: “I think there is zero per cent chance I will ever pay the debt back if I don’t earn money outside of medicine, which is unlikely because it’s a full-time, stressful job.”

Chancellor Rachel Reeves announced in November that the salary graduates must begin to repay their plan two student loans will be frozen at £29,385 for three years from April 2027.

Under current rules, graduates earning above £28,470 per year see money leave their payslips each month towards their £9,000-a-year tuition fees, which were introduced in 2012, plus any extra loan towards living costs.

Those on plan two, who studied between 2012 and 2023, pay 9 per cent of their income above the threshold through an automatic deduction. The loans are written off after 30 years, but start to accrue interest from the moment they are taken out.

Interest on them is set at the retail price index (RPI) rate of inflation plus up to three percentage points, depending on how much you earn. Those who earn £51,245 or more pay the entire three per cent on top of the RPI.

Money saving expert Martin Lewis addressed the chancellor’s decision on BBC Newsnight: "It's not a tax, it's a contract that the government signed with young people who have not been given any education on these loans. I do not think it is a moral thing for you to do... please have a rethink."

Alex Stanley, vice president of the National Union of Students, described the complex student loans contract as a “political football impacting our bank balances each month” and said “anyone who went to university for free should not be able to call the current system fair.”

He added: “The student loan system isn’t working for anyone. Not for students who are having to access foodbanks. Not for graduates who are paying back hundreds of pounds a month without touching the sides of the interest on their loans. And not for the government as student debt is ballooning.

“Students and graduates are gearing up to be a powerful electoral force. And with the polling in YouGov which finds there is growing support for measures including completely wiping off all student debt, it is time the chancellor starts looking at the practical solutions which would deliver for student and graduates.”

A Department for Education spokesperson said: “The fiscal situation this government inherited means we’ve had to make tough choices. Threshold freezes are part of the hard but fair decisions needed to protect taxpayers and students now and for future generations of students and workers.

“The student finance system is heavily subsidised by government and lower-earning graduates will always be protected, with any outstanding loan and interest cancelled after 30 years.

“Under this system, graduates earning some of the highest salaries in the country contribute more towards the repayment of their student loan than workers who did not attend university or graduates on the lowest salaries.”