Interest-Free Student Loans: My campaign
Student loans impact the careers of millions of young people, yet for many they have become a barrier rather than a bridge to opportunity.
During my term as a Youth MP, I have seen how the current system affects students through conversations with other Youth MPs from across the UK who share my concerns.
Online surveys and research also show that students are impacted not only financially, but emotionally and socially as well.
I have spent the past year speaking to university leaders, MPs, and young people across our community, and realised that the current model for student loans is not working for those young people.
What I Learned from Meetings within my Youth MP role:
As part of my Youth MP role, I have met with university and college principals within Peterborough. Most of the further education institutes have accessibility programmes, bursaries and hardship funds designed to ease financial pressure, as well as diversity and inclusion programmes for students in underrepresented backgrounds.
Even so many students continue to struggle. The cost-of-living crisis has worsened, maintenance loans rarely cover full living expenses, and interest begins accumulating the moment a loan is issued.
All of the principals were clear that financial stress from student loans is now one of the biggest barriers to student wellbeing and success. Within my term, I have also met with the local MPs to discuss the financial and mental burden that student loans create.
What is wrong with the student loan model?
In England alone, student loan borrowing in 2024–25 reached £19.8 billion, while the total outstanding student loan balance rose to £266.6 billion. Many graduates face average debts of around £53,000, and more than 150,000 now owe over £100,000.
The emotional impact is equally worrying. Recent UK studies show:
- 46% of students say financial difficulties significantly affected their mental health.
- The cost-of-living crisis and loan pressures have harmed students’ wellbeing.
- Young people with student debt are far less likely to buy a home in their twenties compared with those without loans.
These statistics confirm what many students have been telling us for years: the current system leaves them feeling trapped by debt before their adult lives have even begun.
Taking the Issue Nationally: My Work in the Youth Parliament
One of my proudest achievements this year was raising the idea of interest-free student loans at the Youth Annual Conference, arguing that while fully abolishing student loans may be unrealistic in the short term, removing interest is a fair and achievable first step.
It would stop debts from growing uncontrollably and allow graduates to actually repay no more than what they borrowed.
The proposal gained strong support. It passed multiple rounds of debate, and at the second annual conference I worked in the Youth Parliament Education Committee to raise awareness on interest-free student loans.
Looking Ahead
My year as Youth MP has shown me how powerful collective youth action can be. I have seen ideas move from conversations to conference halls, to national manifestos, and to the hands of MPs.
There is still work to be done, but the momentum is real. Young people are demanding a fairer, kinder, and more sustainable student finance system, and leaders are beginning to listen.
I am proud to have played a part in pushing this national issue forward, and I will continue to advocate for student loan reform, so that education remains a pathway to opportunity, not a source of lifelong burden.
How you can get involved
- Contact me – Pranav.Aggarwal@peterborough.gov.uk
- Fill in my survey
Reflections as Youth MP
My two years as Youth MP have been a very valuable experience, mainly because they provided me with understanding on the ongoing problems of young people across my local area and allowed me to convey them to key decision makers across Peterborough and even nationally.
My proudest achievements as Youth MP, and even my entire life, have been the speeches on housing and transport on which I spoke in the House of Commons. I illustrated the views of young people in my local constituency to a national level and made sure that the young people in Peterborough’s voices were truly valued.
At the Youth Culture Conference, I presented my manifesto point of diversity and inclusivity, which included young people coming together from different schools across Peterborough and participating in discussions and activities regarding culture and how diversity and inclusivity can be prioritised in the city, and its importance.
Regarding my other manifesto point of making higher education more accessible, I have spoken to the principals of colleges and universities in the city, and they have all stated that the system of student loans should be adjusted as it is fundamentally unfair.
Overall, my Youth MP term has been informative and successful; I have learnt so much from the experience regarding government policies, local initiatives and the needs and wants of young people across my city.
I have also participated and even hosted events which created collaboration among young people and key decision makers within Peterborough allowing the collective voice of young people to be heard and even acted upon.
Looking ahead to 2026, I think there are a few priorities for young people in Peterborough:
- Improving access to further and higher education, especially for those worried about debt or financial barriers.
- More youth-led school events which embrace and celebrate those of underrepresented backgrounds such as culture weeks which share culture foods
- Better opportunities and pathways - apprenticeships, local training, or support for those not following a traditional academic route.
- Listening more regularly to young people’s ideas (surveys/focus groups), not just in schools but across Peterborough - making sure to include young people from all schools (including home-schooled).
Thank you to everyone for their support, and see you in 2026.
Pranav.