Graham has launched a petition calling on the Government to cap student loan interest at inflation and end above-inflation charges that are holding back young people across Beverley and Holderness.
It comes as parents and grandparents raise growing concerns that their children are paying their student loans every month, yet seeing the overall balance rise rather than fall.
Under the current system, many graduates are charged interest at inflation plus 3 per cent. That means ordinary earners can be repaying for decades, while their debt barely reduces.
In November’s Budget, the Chancellor confirmed that repayment thresholds would remain frozen, meaning more graduates will repay more in real terms over time.
For example, a graduate earning around £30,000 a year can see hundreds of pounds deducted annually, even while interest continues to build on the overall balance.
Many families feel disappointed. Before the election, senior Labour figures said graduates would be better off under a Labour government. Instead, parents are telling Graham that the system feels tougher, not fairer.
Graham said:
“Parents and grandparents across Beverley and Holderness are worried about their children’s future.
“They have worked hard. They have studied or trained. They are paying their student loans every month.
“Yet many are seeing their balance go up, not down. That does not feel fair.
“When interest is set at inflation plus 3 per cent, and repayment thresholds are frozen, it becomes harder for ordinary earners to get ahead.
“This is not about tinkering. It is about setting a clear cap. Student loan interest should be capped at inflation. Not inflation plus 3 per cent. Not above inflation. Inflation, and no higher.
“The state should not profit from young people trying to better themselves.
“If we want young people to rent a flat, save for a home, set up a business and start a family, we must give them confidence that the system is fair.
“This is about restoring trust and giving the next generation a proper chance to get on.”
The petition calls on the Government to cap student loan interest at inflation and end above-inflation charges on student debt.
Graham stressed that fairness must apply to all young people, whether they choose university or an apprenticeship, and that Britain needs a system that supports ambition rather than holding it back.
