Student loans: More than 52,000 responses to Treasury Committee call for evidence

The Treasury Committee has published a summary of the results of its public survey on student loans and the taxation of graduates. 

On Thursday 12 March, MPs invited anyone over the age of 16 to contribute their experiences and views on student debt directly through an online survey. The deadline for responding was Tuesday 14 April. 

The Committee received more than 52,000 responses to its survey, one of the highest response rates to a select committee inquiry ever recorded. 

In summary, of the 49,357 respondents who have taken out student loans:

• 40,373 said the financial impact of repaying their student loan combined with the level of tax was worse than they expected
• 45,843 said that they think the level of interest and repayment terms were not reasonable
• 34,555 said that their repayments had a material impact on their financial planning for the future
• 28,275 said that they did not understand the terms and conditions of their student loans before they took them out
• 45,066 said that they would not have been able to attend higher education without a student loan
• 25,291 said they would not take their student loan out if they were given the choice again

The Committee has also published a compilation of student loans promotional materials received from the Department for Education. These will inform the Committee’s work around how student loans were explained and advertised to prospective students.

The first session of the Committee’s inquiry into student loans and the taxation of graduates will take place on Tuesday 2 June. Among those giving evidence will be representatives from Universities UK, the National Union of Students (NUS), Rethink Repayment and the author of the 2019 review into student loans, Sir Philip Augar. 

In addition, the Committee has published a summary of the parts of the survey responses which were submitted as written text.

Chair of the Treasury Committee, Dame Meg Hillier, said:

“Let me say very clearly to those who filled out our survey: the message has landed with the Committee. While not everyone has had a bad experience, the massive scale and strength of frustration and upset is powerful and, as MPs, we must listen.

“It’s imperative for the prosperity of our country that people currently in their 20s and 30s feel incentivised to work hard and build successful careers. Unfortunately, what these findings tell us is that far too many young people feel over-burdened and demoralised by their student debt.

“My Committee will now spend the coming weeks looking at the different options available to the Government before making some recommendations for change.”

Sector Reaction

Alex Stanley, National Union of Students Vice President said:

“When the Treasury Select Committee launched this survey they stepped up where successive governments has failed for so many young people.

“This data paints a picture about how damning the situation is. Students and graduates already knew this was the case, because we are living it. We were not well informed of what paying off our loans would look when we signed onto a debt as big as a mortgage at just 17. Governments have repeatedly changed the terms, in a move that no bank could do, making the conditions worse while we have no option but to take the financial hit. These loans were necessary to invest in our education, but now they are freezing our futures.

“We are grateful that the Treasury Select Committee are taking the time to look for solutions. This Government will soon have a choice, to bury their head in the sands about the challenges facing a generation or to take this opportunity and show they have heard us. I don’t think they can afford not to listen any longer.”