Nearly half of British public want some student debt cancelled

More than two in five people in Britain believe the government should cancel some or all student debt, a new survey has found.

A campaign to reform student loans has grown in momentum in recent weeks, with critics warning those on “Plan 2” loans paying hefty interest charges are stuck in “a student debt trap”. The government has been accused of adding a “stealth tax” to graduates’ earnings in England by freezing the threshold at which they pay back student loans in the budget last year.

Speaking to BBC Newsnight last week, the chancellor Rachel Reeves defended the changes as “fair and reasonable”.

But the coverage indicates the campaign is having an impact, with 44 per cent saying the government should write off some or all student debt, according to a new YouGov poll. Forty-one per cent of people think graduates should have to pay back their loans as currently.

Among the respondents, 36 per cent say the government should write off all student debt, 35 per cent think a portion should be reduced, and 25 per cent would prefer to forgive the additional debt accrued on top of the initial loan.

The poll, conducted at the end of January, showed that graduates unsurprisingly are more in favour of cancelling some student debt.

Graduates on “Plan 2” loans pay back 9 per cent of their income over the monthly threshold.

The polling found that 63 per cent of people thought this was too high. Almost half (46 per cent) say that 3 per cent was about the right level.

Though the public appear uncomfortable with the size of the financial burden placed on graduates, they still believe it is their responsibility.

Just a third (32 per cent) say university education should be funded by taxpayers – compared with a third (32 per cent) who think it should be through the medium of student loans and a quarter (23 per cent) via a graduate tax.

While many vice-chancellors have called for tuition fees to be increased, the wider public are overwhelmingly opposed.

Over two-thirds (68 per cent) say £9,000 fees are too high, and just 16 per cent say they are the right level. Almost half (46 per cent) say £3,000 fees (roughly what was charged before 2012) was about the right amount.

Alex Stanley, the vice-president for higher education at the National Union of Students, said that the “student loan system isn’t working for anyone”.

“Not for students who are having to access food banks. Not for graduates who are paying back hundreds of pounds a month without touching the sides of the interest on their loans. And not for the government as student debt is ballooning.”

He said Reeves should be “looking for a solution rather than doubling down on a broken system” and “needs to stop playing politics with students and graduates”.

patrick.jack@timeshighereducation.com