The Student Loans Company has confirmed it has received over 10,000 complaints from graduates alleging they were mis-sold loans during promotional campaigns in England and Wales. The complaints, filed since 2023, claim that borrowers were not adequately informed about the terms, including interest rates and repayment conditions.
Aggressive Marketing Tactics Under Scrutiny
An investigation by the Guardian reveals that marketing materials for student loans between 2018 and 2022 often highlighted the benefits of borrowing without clearly explaining the long-term financial obligations. According to a spokesperson for the Student Loans Company, "We take these complaints seriously and are reviewing each case individually."
Impact on Graduates
Many graduates report being unaware that their loans would accrue interest at rates significantly higher than commercial loans, with some facing total repayments exceeding double the original amount borrowed. The average debt for a three-year degree in England now stands at over £50,000, up 20% from a decade ago.
Regulatory Response
The Financial Conduct Authority is examining whether the promotional campaigns violated consumer protection laws. A spokesperson said, "We are assessing if students were given clear and fair information before taking out loans." The government has also faced calls to reform the student loan system, with opposition MPs arguing that the current model amounts to a "graduate tax."
