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A decade ago, the government delivered a presentation to teenagers comparing student loan repayments to a £30-a-month mobile phone contract, according to information uncovered by BBC News. This presentation was part of a broader initiative called “student finance tours” which ran from 2011 until 2017. Graduates employed by a private firm were tasked with visiting thousands of schools to discuss student finance on behalf of the government at the time.
Those graduates were instructed to avoid using terms like “debt” while explaining student loans. One former presenter shared with the BBC that he felt as though he had “sold his soul to the devil” by delivering the scripted message. The Department for Education (DfE) clarified that these presentations were conducted under past governments, while current officials have aimed to improve fairness within the system.
The script from the presentation, which referred specifically to Plan 2 loans, included an example of repayments based on an income of £25,000, indicating that graduates would pay 9% of earnings above the repayment threshold, then set at £21,000. This translated to repayments of just under £7 per week, or under £30 monthly. The script suggested that this amount was comparable to a typical phone contract, positioning it as an affordable commitment. However, former presenters believe the severity of taking on such loans was understated during these talks.
Plans established between 2012 and 2023, particularly Plan 2 loans, have recently faced criticism over their high interest rates and changed repayment thresholds. The student loan debt landscape has grown heavier, with current figures showing graduates leaving university with an average debt of around £53,000 and monthly repayments of about £93. Interest accrual and loan terms mean that many borrowers never fully repay their debts. One former presenter, who now resides in Australia, recalls struggling with repayments and reflects that he was fortunate to attend university prior to the introduction of Plan 2 loans, reiterating his feelings of compromise about how the loan information had been presented
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