There has been an escalating political row in recent months over both the earnings threshold – the point graduates start to repay their loans – and interest rates, particularly those applied to Plan 2 loans.
Interest rates are calculated using an older measure of inflation, plus up to 3%. That means the current maximum interest a higher earning graduate is charged is 6.2%.
As a result, graduates have seen outstanding balances increase far higher than the initial amount of their loans, fueling a sense of injustice.
That anger, together with government plans to freeze the repayment threshold from 2027, has seen opposition parties putting forwards competing suggestions for how to provide redress.
The Conservatives have vowed to cut the rate of interest charged on Plan 2 loans, while the Lib Dems have called for the point at which graduates start repaying their loans to be linked to average earnings.
However, any attempt to reduce the amount graduates repay over their lifetime would ultimately come at a cost to taxpayers, according to recent analysis by independent economists at the Institute for Fiscal Studies, external.
The government has already committed to reintroducing maintenance grants of up to £1,000 a year for students on some courses.
A government spokesperson said: “We inherited the student loans system, including Plan 2, which was devised by the previous government.
“Threshold freezes have been introduced to protect taxpayers and students now, alongside future generations of learners and workers. The student finance system protects lower-earning graduates, with repayments determined by incomes and outstanding loans and interest being cancelled at the end of repayment terms.”