Graduates say student loans are limiting career progression

Beth Smith, an events and hospitality manager in Bradford, also appeared on the programme. Smith said she was the first person in her family to go to university and said nobody sat down with her and discussed the costs before she took out he student loan.

“I didn’t know anything about interest or repayments,” she said.

Smith said her debt is currently around £80,000.

“The biggest thing is how it impacts career progression – If I was to go for those higher earning jobs, I’ve got to pay more.”

Merry said she was told at the time she took out the loan that her monthly repayments would be similar to that of a mobile phone contract.

The solicitor said that in retrospect, if she had fully understood the terms of the contract and repayments, she probably wouldn’t have taken out the loans.

A government spokesperson said they recognised some graduates had concerns about the cost of student loan repayments.

“We inherited the current system and have taken steps to make it fairer – including raising the repayment threshold for the first time since 2021 and capping maximum interest rates this year to protect graduates from rising costs.

“We have also reintroduced targeted maintenance grants to expand opportunities for people from all backgrounds to go to university or college.”

The spokesperson said the student finance system protected lower-earning graduates, with repayments linked to income and any outstanding balances and interest written off at the end of repayment terms.

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