UK MPs say government mis-sold student loans by comparing them to phone contracts

Comparing student loan repayments to phone contracts or cinema tickets 'amounted to mis-selling' by government, a group of MPs has said.

The Treasury Committee also said students were not told clearly enough loan terms could change retrospectively, and called for a U-turn on the decision to freeze the income threshold at which some graduates start repaying their loans.

Chancellor Rachel Reeves said the repayment threshold for students with Plan 2 loans would be frozen at £29,385 between 2027 and 2030, instead of rising with inflation.