There are new claims that UK higher education institutions and the government misled students regarding the value, costs, and repayment terms of tuition, particularly post-2012.

Graduates, especially those on Plan 2 loans, may pay up to £14,000 more than expected due to retrospective interest rate changes.

Key issues include overhyped “graduate premiums,” high-interest rates, and lack of transparency, with some calling it a “scandal” similar to payment protection insurance.

The financing has seen retrospective loan changes to repayment terms, such as freezing income thresholds, that have significantly increased the debt burden for graduates who entered university after 2012.

This has been exacerberated by the nature of the debt structure: The Student Loans Company (SLC) and the government have been heavily criticised for creating complex, high-interest debt that disproportionately affects lower-earning graduates.

Arguments have been made that many degrees do not provide a sufficient financial return to justify high tuition fees, with many graduates not earning enough to pay off loans within 30 years.

The situation has been described by some as a “scandal”, with particular focus on the financial burden placed on students, which is sometimes compared to other, regulated, financial mis-selling cases.