With the Autumn Budget taking place this Wednesday 28 October, student finance is firmly in the national spotlight. You might have seen news headlines or social media posts discussing national student debt figures and loan interest - and we know how overwhelming that can sound.
As your Officer Team, we want to be completely transparent about what's happening, including what this means for you and how you can act.
First things first: How your loan works
Before jumping into the campaign, it's important to remember how UK student loans work in practice:
- Repayments are income-contingent: You only ever pay back a percentage of what you earn above the repayment threshold once you graduate. If your income drops or you aren't working, your repayments stop.
- It isn't commercial debt: Student loans don't affect your credit rating, and you won't have bailiffs knocking on your door.
While the system is designed to protect you from immediate financial risk, the current setup still needs to be made fairer for your future.
Why the system needs fixing
Right now, national policy decisions - like freezing the earnings threshold at which graduates start repaying their loans, alongside high interest rates - mean graduates are keeping less of their hard-earned money each month and taking decades longer to pay off their balance.
Even the Education Secretary, Lucy Powell, has called the current setup "egregious" and pledged to work towards a fairer model.
We believe university should be an investment in your future, not a lifelong financial burden. Whether you're a UK student or an international student watching how the UK treats its graduates, everyone deserves a system that is transparent, fair, and supportive.
How to get involved
We're calling on the Chancellor and the Government to unfreeze repayment thresholds and reform interest rates. The more voices we have behind this, the harder we are to ignore.
Write to your local MP
Use the Find your MP tool to find your MP's name and email, them write to them to tell them enough is enough.
Not sure what to say? Use the following email template.
Email template
Dear [MP's name],
I'm writing as a constituent and member of the Sheffield Hallam community to ask you to support calls for a fairer student loan system.
Students and graduates are facing significant financial pressures, and the current student loan system means many continue to repay more than they expected. The Government should unfreeze student loan repayment thresholds and reform interest rates so graduates are treated more fairly.
Freezing repayment thresholds means that as graduate salaries rise with inflation, more of their income can become subject to student loan repayments. This risks leaving graduates with less money in their pockets at a time when the cost of living remains a challenge. High interest rates can also mean the balance owed continues to grow, making it difficult for graduates to understand the real cost of their loans. Graduates on plan 2 loans will have to earn £66,000 a year to beat the interest rate on their loan; the average income in Sheffield is around £37,500. This means graduates from Sheffield Hallam, who often stay in the region, will see their debt grow throughout their working lives.
This matters to Sheffield Hallam students in particular. Many students commute from across South Yorkshire, balance their studies with paid work or caring responsibilities, and train for essential professions such as nursing. Graduates should not be unfairly disadvantaged for choosing to pursue higher education, gain new skills, or enter careers that benefit our local communities.
Sheffield Hallam and its graduates play an important role in developing the skills our region needs, supporting local employers, and strengthening our economy. A fairer student loan system is part of ensuring higher education remains accessible and graduates can afford to build their lives and careers in South Yorkshire.
I would like to ask:
- Will you call on the Chancellor to unfreeze student loan repayment thresholds?
- Will you support reform of student loan interest rates to ensure graduates are not unfairly burdened by the cost of borrowing?
- What action will you take to ensure the Government delivers a fairer student finance system for current students and graduates?
I would appreciate it if you could raise these issues with the Chancellor and make clear the impact that student loan repayments have on people in Sheffield and the wider South Yorkshire region.
Thank you for your time. I look forward to hearing from you.
Best wishes,
[Your name]
[Your postcode]
Member of the Sheffield Hallam community
We'll keep fighting for a higher education system that values and supports every student at Hallam. Let's make sure our voices are heard.
Your HSU Officers