‘Basically you’re trapped’: UK postgraduates burdened with double loan debt
Calls for reform to student loan system as those studying for a master’s can be left with ‘a life tax’Whether to pursue a master’s degree was not really a choice for Francesca Pete
By The Guardian
UK postgraduates pursuing master’s degrees are facing crippling double loan debt, with some describing the burden as a “life tax” they will never pay off, prompting urgent calls for reform of the student loan system. Francesca Peters, who completed an undergraduate degree in biochemistry in 2020, said pursuing a master’s was not a choice but the only route into her chosen field.
She finished her first degree with more than £60,000 in student debt, but taking on a second loan for her master’s pushed her total debt to £77,000. “It just feels like a life tax,” Peters said.
“Because I’m never going to pay it off.”
New data shows UK student debt has surged to £294.6 billion, trapping postgraduates in aggressive dual-loan repayment structures that severely limit income. Under current rules for courses starting from January 2027, graduates will begin repaying loans when earning over £25,000 a year, with loans written off 40 years after the first repayment date.
The interest rate charged is 3.2%, applied from the day the first loan payment is made until the debt is fully repaid or written off. The situation highlights growing pressure on the student finance system, with experts urging the government to raise the repayment threshold from £29,385 to £33,542 to ease the burden on lower-earning graduates.
For the lowest-earning 10% of graduates, lifetime repayments amount to around 1.1% of earnings, while the highest-earning 10% repay around 1.2%. Under the new system, student loans will become cheaper for high-earning graduates but more expensive for those with lower earnings.
Francesca Peters’ experience reflects a wider trend among UK postgraduates who feel trapped by the dual debt structure, with many saying the current system makes further education financially unsustainable.