In a stark illustration of the student loan crisis gripping the UK, a nurse has seen her debt skyrocket from £57,000 to over £77,000, even as she diligently makes monthly repayments. Helen Lambert, a 33-year-old NHS nurse, borrowed £57,958 to fund her studies at Edinburgh Napier University and began repaying her loan in 2021 after starting work. Despite repaying more than £5,000, typically with around £145 deducted monthly from her pay, her efforts are overwhelmed by interest charges that can exceed £400 per month, driven by rates as high as 8%.
The Growing Burden of Plan 2 Loans
Lambert's situation is not unique; she is one of millions of graduates trapped by plan 2 student loans, which were introduced for students in England starting university between September 2012 and July 2023. Under this system, graduates repay 9% of their earnings above a threshold, currently set at £28,470 per year. However, with interest linked to the Retail Price Index (RPI) inflation rate—which peaked at 8% in August 2024—many find their repayments barely scratch the surface of the accumulating debt.
A Disheartening Financial Reality
"It is so disheartening to have this level of debt hanging over you with no achievable way to clear it or even reduce it while they add on upwards of £400 a month in interest," Lambert explains. Her total outstanding debt reached £77,359 by the end of November 2025, with another 25 years remaining in the 30-year repayment period. She emphasises that while she doesn't believe her studies should have been free, the current system feels punitive and unmanageable.
Lambert was particularly affected by timing: she started her nursing course in 2017, just weeks after NHS bursaries—worth up to £16,454 annually—were axed. A partial replacement grant of at least £5,000 per year was not introduced until September 2020, after she had graduated, leaving her cohort without crucial financial support.
Political and Policy Implications
The issue has gained political traction, with Labour MP Nadia Whittome highlighting her own struggles. Whittome, who left university in 2019 with £49,600 of debt, has seen only £1,000 shaved off after six years of repayments despite her MP salary. "If MPs are barely making a dent in their student loan debt after six years of repayments, what chance do other graduates have?" she questioned.
In last year's budget, Chancellor Rachel Reeves further tightened the screws by freezing the salary threshold for plan 2 loan repayments for three years. This means borrowers will pay more as their wages rise, fuelling calls to rebrand student loan debt as a graduate tax. Indeed, the system operates similarly: repayments are collected through payroll, and loans are written off after 30 years, with most plan 2 borrowers never repaying in full.
How Student Finance Works
Student finance in the UK comprises two main components:
- Tuition Fee Loan: Covers course fees, paid directly to the university.
- Maintenance Loan: Helps with living costs like rent and food.
Interest accrues from the first payment until the loan is repaid or written off. Repayment plans vary, with plan 2 being the most common for recent graduates. The interest rate fluctuates monthly based on RPI, and loans are cancelled 30 years after the repayment start date, regardless of the remaining balance.
Managing the Debt: Expert Advice
For those like Lambert, managing this debt can feel overwhelming. Experts generally advise against making extra payments for most plan 2 borrowers, as they are unlikely to repay the loan in full before it is written off. Save the Student, a money advice website, notes that overpaying could mean paying back more than necessary in the long run.
Martin Lewis of MoneySavingExpert.com suggests that only very high earners or those with strong salary prospects should consider overpaying. His website offers a calculator to help graduates assess their situation. Additionally, borrowers earning near the threshold should check if they are due a refund, especially if extra shifts or bonuses push their income temporarily above the limit.
Government Response and Future Outlook
The Department for Education defends the system, stating: "This government is making fair choices to make sure the student finance system is sustainable—protecting taxpayers and students." They highlight that the repayment threshold will rise to £29,385 in April and remain frozen until 2030, aiming to balance affordability with fiscal responsibility.
However, for nurses like Helen Lambert and countless other graduates, the reality is a mounting debt that feels insurmountable. As calls for reform grow, the debate over whether student loans should be treated as a graduate tax continues to intensify, reflecting broader concerns about fairness and accessibility in higher education.
