Graduates Stage Shark-Themed Protest Against 'Loan Shark' Government Policies
Graduates wearing shark costumes and masks depicting Chancellor Rachel Reeves gathered outside the Houses of Parliament on Wednesday, accusing the government of behaving like "loan sharks" over the student loan system. The demonstration, organised by the National Union of Students (NUS), highlighted growing anger about Plan Two loans and the interest accumulating on them.
Frozen Thresholds and Mounting Debt Burdens
The protesters demanded an end to the three-year freeze on repayment thresholds announced in the last Budget, calling for caps on repayments and a broader discussion about interest rates. Instead of rising with inflation annually, the repayment threshold will remain fixed at £29,385 from April 2026, meaning more graduates will start repayments earlier as wages increase.
Graduates currently repay nine percent of their income above this threshold. The freeze effectively drags more earners into repayment sooner than if the threshold had kept pace with inflation, increasing financial pressure on young professionals.
Personal Stories of Financial Struggle
NUS president and Birmingham University graduate Amira Campbell, 24, told The Independent she owes over £50,000 in student debt, describing the situation as a crisis the "country has sleepwalked into." She explained how young people are encouraged to attend university but then struggle with employment, housing, and starting families while monthly loan deductions continue.
"We believe that the government are being a bit of a loan shark when it comes to student loans," Campbell stated, capturing the protest's central theme.
The Interest Rate Trap
Alex Stanley, 23, a University of Exeter graduate, highlighted how the system punishes ambition. He borrowed £50,000 but now owes £62,000, with £7,000 accrued during his studies alone. "It's a complete scandal of a system," he declared, noting broken promises about debt management.
The loan system disadvantages those whose parents cannot pay fees upfront, as interest accumulates over time. During studies, interest adds at RPI inflation plus three percent; after graduation, it's RPI plus up to three percent based on earnings. Many graduates find their repayments barely cover interest, creating spiralling debt.
A Regressive System Creating Generational Burden
Stanley described the system as "very regressive," explaining that while the wealthiest can pay off loans immediately, most graduates face ever-increasing burdens. "The reality is that it feels like we're drowning," he said, noting the average graduate debt of £53,000 prevents mortgage applications, family planning, and financial stability.
The protest specifically targeted Chancellor Rachel Reeves, who has defended the student loan system as "fair and reasonable" despite criticism from financial expert Martin Lewis about the threshold freeze.
Government Response and Justification
A government spokesperson acknowledged borrower concerns but emphasised that the system was designed by previous governments. They stated that "tough but fair decisions" protect taxpayers and future generations, highlighting subsidies, maintenance loan increases, and reintroduced grants.
The spokesperson noted that lower-earning graduates are protected with loan cancellation after the repayment term, and high earners contribute more appropriately. "It is right that those who are able to repay do so," they concluded, framing repayments as income-based rather than debt-based.
The protest underscores deepening tensions over student finance, with graduates feeling betrayed by a system they say hampers their life prospects while benefiting only the wealthiest.
