Two-thirds of UK public ‘think student debt burden is unfair

A majority of the British public think it is unfair that graduates are charged interest rates on their loans, according to new data.

After months of outcry about graduates’ debt levels, the government has promised to make the student loan system fairer but has yet to announce any specific changes.

Recent polling by Public First highlights the pressure policymakers are under to find a solution, with 65 per cent of people saying that the total amount of debt students take on to attend university is unfair. In contrast, only 7 per cent said it was very fair.

Having no limit on how much graduates can repay in total was seen as unfair by 62 per cent of respondents, while the interest rate charged on student loans was judged unfair by 61 per cent.

Almost half of people said it was unfair that graduates have to pay back 9 per cent of what they earn above the repayment threshold per month.

Survey respondents said the fairest element of the system was how student debt for those on Plan 2 loans is written off after 30 years.

Jonathan Simons, head of the education practice at Public First, said the polling shows that the public – and student loan holders – have a nuanced understanding of the conditions of loans and are able to identify what the “fair and unfair bits of the system are”.

“But it also shows the bind the government is in. Total amount of debt is people’s biggest concern, and reforms won’t change that,” he continued.

“Of the two issues most commonly cited as options, the general public would like to see interest rate changes, but Labour and Green voters strongly prefer changes to reduce monthly repayments by graduates now.”

In total, 29 per cent of respondents said the government should prioritise cutting the interest rate charged on loans, followed by 23 per cent who said monthly repayments should be reduced.

Among those with loans, 68 per cent said that the interest rate charged was unfair, and 71 per cent said the same about the total debt burden.

The survey, which took place last week, included a sample of almost 2,000 people from across the UK.

It suggests that that 37 per cent of the UK population view student loan debt as the biggest financial pressure facing young people today.

But this was behind renting and the cost of housing (55 per cent), saving enough to buy a home (47 per cent), and the cost of food and groceries (43 per cent).

The data shows that people who did not take out student loans are almost as concerned about the topic as those who did, with 36 per cent of those in the former group agreeing that it was the biggest financial pressure among young people.

Older voters were more likely to be concerned by the debt crisis, with 51 per cent saying it was the biggest worry for young people. Those aged 25 to 34 were the least likely to say the same (27 per cent).

Voters from all major political parties were similarly concerned about the issue but those from the Liberal Democrats were the most worried (44 per cent).