UK Reform

The Conservative Party has pledged to abolish the, "unfair", additional interest charged on Plan 2 student loans, in a move leader Kemi Badenoch has described as a, "new deal for young people". Announcing the policy, Mrs Badenoch stated she would scrap the supplementary interest on loans taken out by students who attended university between 2012 and 2023, arguing that the current system, "increasingly feels like a scam", to young people. The loans have faced widespread criticism for imposing an interest rate of up to 3 per cent in addition to inflation , if on a high income. Critics argue this structure has left two-thirds of graduates unable to pay off their balances. While the loans are written off after 30 years, the terms often mean graduates must earn at least £66,000 just to keep up with interest payments, frequently resulting in them paying back far more than they originally borrowed. Under the new proposal, the Conservatives have pledged to a...