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MPs launch investigation into student loans system

The Treasury select committee is investigating loan interest rates, frozen repayment thresholds, and graduate tax burdens amid widespread dissatisfaction, with borrowers owing over £50,000 on average.

  • Recently the cross-party Treasury select committee launched a parliamentary inquiry into student loan repayments and graduate tax burdens, with Dame Meg Hillier saying it questions if goalposts moved unfairly.
  • Plan 2 borrowers repay 9% of earnings above 28,470, rising to 29,385 in April, with thresholds varying by year and postgraduate loans adding 6%.
  • Workers with undergraduate loans earning over £50,000 face an effective marginal tax rate of 51%, and students now leave university with more than £50,000 in debt.
  • The committee is calling for evidence and will accept online submissions from anyone over 16 until Tuesday April 14, while MPs question witnesses on interest and regulator duties.
  • MPs argue the inquiry could revisit the higher education funding balance, with Martin Lewis stating 'This is deliberate fiscal drag, the stealthy way governments are increasing the tax-take'.
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cherwell.org broke the news in on Sunday, March 8, 2026.
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