Treasury committee blasts threshold freeze as mis-selling; MPs urge the next Treasury chief to scrap the three-year repayment-threshold freeze for graduates. SLC, the UK-government-backed body that administers loans, faces renewed scrutiny as higher borrowing caps expand programs post-court ruling.
Federal student‑loan regulations have changed this week under the One Big Beautiful Bill and court rulings. The Education Department has rolled out new repayment plans, temporary interest‑rate cuts for autopay enrollees, and lifetime borrowing caps for graduate and professional students, while a federal judge has paused the department's narrowed definition of "professional degree," temporarily preserving wider borrowing access for many advanced‑health and other programs. Notices are going out to millions of borrowers who must pick new plans.
A Commons Treasury Committee has criticised the government for freezing the student loan repayment threshold for Plan 2 loans at £29,385 from 2027 to 2030, instead of uprating with inflation. The report labels the move mis-selling and calls for reversal in the autumn budget, arguing the policy loads unfair costs onto younger generations. MPs reference earlier promotional material and warn of a loss of trust in the system.