The student loan crisis has been a major issue in recent days, with the education secretary, Bridget Phillipson, saying there were problems with the current arrangements amid growing anger about the plight of millions of graduates saddled with ballooning debts.
The catalyst was the decision last November by the chancellor, Rachel Reeves, to freeze the salary threshold for plan 2 loan repayments for three years, seemingly in defiance of the original declaration in 2010 that the threshold would be uprated annually in line with earnings.
Labour MPs have been vocal in their criticism of the student loan system, with Alex Sobel, Labour member for Leeds Central and Headingley, saying that people on the plan 2 student loan are being outrageously scammed and burdened with unattainable debt levels and interest rates on their student loans.
Jas Athwal, the MP for Ilford South who called the debate, said many believed plan 2 loans and the wider system were predatory, regressive, kill graduates' ambitions, and the spiralling interest was stressful for students. He added that a whole bled dry by a system that just keeps taking from them.
The issue has also been raised by consumer champion Martin Lewis and the National Union who spearheading the demands for action. Lewis this week clashed on air with the Conservative leader, Kemi Badenoch, over the issue on ITV. The Lib Dems' Josh Babarinde, the MP for Eastbourne, referenced a song by band the Eagles when he said many people were trapped in a student Hotel California, where they could check out, graduate, but never leave.
The government has responded to the MPs' comments, saying that it inherited the student loans system, including plan 2, which was devised by the previous government, and that threshold freezes have been introduced to protect taxpayers and students now, alongside future generations of learners and workers.
The student finance system protects graduates, with repayments determined by incomes loans and interest being terms. However, the issue remains a major concern for many graduates, with many calling for an urgent shake-up of the unfair system.
The education secretary, Bridget Phillipson, has said that the system of plan 2 loans has problems, but suggested that the government's priority would be maintenance grants for poorer students, rather than tackling the high interest rates.
She added that the government will continue to keep ways in which it can make life better for graduates, including through this system.
