Burdened by Debt: How Student Loan Repayments Are Stalling Careers

Two women share how their student loan debts are preventing them from pursuing higher-paying jobs, as repayments would leave them with less disposable income.

Charlene Merry, a 31-year-old senior solicitor in Hull, owes £70,000 and pays £400 monthly. She says a salary increase would mean higher repayments, leaving her with less to live on, which is "really frustrating."

Beth Smith, an events manager in Bradford with £80,000 debt, echoes this: "The biggest thing is how it impacts career progression." She was the first in her family to attend university and felt uninformed about interest and repayments.

A Treasury Committee inquiry is assessing if repayment terms for Plan 2 loans in England are "reasonable." Graduates pay 9% of income over £28,470, with the threshold frozen until 2030. The government recently capped interest at 6% and raised the threshold, but campaigners call for wider reforms.

Merry says she was told repayments would be like a mobile phone contract; in retrospect, she might not have taken the loans. A government spokesperson says they are making the system fairer and protecting lower-earning graduates.