A report by the Treasury Committee has criticized the government's practice of comparing student loan repayments to phone contracts or cinema tickets as 'mis-selling', arguing that such comparisons were misleading and inaccurate for higher earners.

The committee highlighted that students were not adequately informed about potential changes to loan terms and called for a reversal of the decision to freeze the repayment threshold at £29,385 until 2030.This freeze means graduates start repaying their loans sooner or pay more as salaries rise, while the threshold remains static.

The report referenced a BBC investigation revealing that the government previously compared student loan repayments to £30-a-month phone contracts in promotional materials targeting teenagers, which was deemed 'inaccurate for higher earners'.

While the government and Student Loans Company acknowledged the committee's contribution, they emphasized ongoing efforts to improve transparency and fairness.

Students like Laura-May Nardella criticized the system, noting that their repayments now exceed hundreds of pounds monthly, far surpassing phone bills.

The report also noted that Plan 2 loans, issued between 2012-2023, have shifted financial burdens from higher earners to all graduates, with repayment rates and thresholds differing significantly from newer Plan 5 loans.