Liberal Democrats push to scrap the threshold freeze, establish a royal commission, and replace RPI with a fairer rate, arguing for durable reforms beyond a single parliament.

Opposition and Lib Dems criticize Plan 2 as unfair debt and advocate reform, including scrapping the threshold freeze, a royal commission, and replacing RPI with a fairer rate.

Phillipson stresses awareness of the issue and the need to consider priorities within budget limits when weighing changes.

Opposition shadow education secretary criticizes Conservative funding choices for prioritizing “dead-end university courses” and proposes policy contrasts, including shifting some National Insurance proceeds for first-time workers into a personal savings account to fund housing.

Conservative leader Kemi Badenoch labels Plan 2 a debt trap and calls on Labour to adopt changes in the spring statement.

The piece centers on renewed public and political debate over England and Wales’s Plan 2 student loan system amid a threshold freeze and rising interest that affect borrowers like Lydia Royce.

Experts and former policy-makers defend income-contingent loans as fair but acknowledge criticisms of Plan 2, with some advocating retaining income-contingent principles while adjusting terms.

The debt issue is set against broader concerns about degree value, graduate housing affordability, and intergenerational equity, with potential political ramifications for youth support.

Contextual notes outline Conservative plans for a personal savings account tied to the first £5,000 of National Insurance for new entrants, alongside long-term debates on tuition fees and Plan 2.

Asked about easing repayments, Phillipson says changes could be considered but must fit within public finances and policy priorities.

Context traces Plan 2 back to the 2010s Liberal Democrat-Tory coalition and ongoing debates over tuition fees, loan terms, and higher education funding policy.

Phillipson acknowledges repayment problems and limited fiscal room to maneuver, stressing that priorities are constrained by public finances.