UK graduates say loan terms were unclear, prompting MPs inquiry

A Treasury Committee inquiry attracted over 52,000 responses showing widespread confusion and frustration over student loan terms, especially Plan 2. Respondents report that 9% of earnings above the repayment threshold go to repayments while the threshold is frozen for years, narrowing finances and potentially hindering mortgage lending and saving. The committee says reforms are needed and will consider options, noting that poorer and middle‑income borrowers may bear more over a lifetime while terms have repeatedly changed.