Graduate Faces £84,000 Student Loan Debt While Working Part-Time in Shop
Lewis Gibson, a 24-year-old graduate from the University of Sheffield, is grappling with a staggering student loan debt of £84,346.27 while struggling to secure a career in his chosen field. Nine months after graduating with a 2:1 degree in politics and Spanish, Gibson has been forced to move back in with his parents in Swindon and works part-time in a shop in nearby Cirencester to make ends meet.
Spiralling Debt and Limited Job Prospects
Gibson's debt originated from approximately £67,000 in maintenance and tuition payments under the Plan 2 student loan system. Although he is not required to begin repayments until he earns £28,470, his balance is subject to interest based on the retail prices index (RPI) inflation rate, plus up to three percent depending on his income. Since last year, he has been charged £4,445 in interest alone, causing his debt to increase annually.
"It's a struggle," Gibson told The Independent. "I'm not immune to the fact the jobs market is challenging, but I do also want to settle down, start putting down roots and cracking on with something."
Despite applying for around 60 roles in the political sector, Gibson has only received three interviews. He has even traveled to Scotland at short notice for one opportunity, highlighting his determination to break into his desired career path.
Broader Graduate Employment Crisis
Gibson's situation reflects a wider trend in the graduate job market. A survey by High Fliers Research found that the number of graduate jobs offered by Britain's 100 leading employers has fallen by a quarter over the past three years. Meanwhile, Office for National Statistics data shows that nearly a million young people were not in employment, education, or training in the final months of last year, with unemployment at its highest level since the Covid-19 pandemic.
"I want to do more and all I want is for a graduate employer, quite frankly, to just take a chance on me," Gibson said.
To supplement his income, Gibson has launched a freelance videography side hustle, but he remains focused on finding a permanent role that aligns with his degree and aspirations.
Political Response and Loan Reforms
The issue of student loan debt has recently gained attention in Westminster. Prime Minister Sir Keir Starmer has vowed to explore ways to make the loans system fairer, while Chancellor Rachel Reeves announced in the autumn budget that the repayment threshold for Plan 2 loan borrowers will be frozen at £29,385 for three years from April, meaning more graduates will start repaying earlier.
Tory leader Kemi Badenoch has called for reforms to reduce interest charges on loans issued between 2012 and 2023, advocating that borrowers only pay the RPI inflation rate without the additional levy of up to three percent applied during studies and post-university for those earning above £51,245.
Gibson expressed concern that the current system could deter students from less privileged backgrounds from pursuing higher education. "I hope this shows we are not whiny snowflake students complaining about money, but that we are a group facing circumstances that are unfortunate," he said. "We're trying to make university education inclusive, but I do wonder if I knew what situation I am in now, would I have gone through with it?"
Government Measures and Future Outlook
The government has announced plans to reintroduce maintenance grants for certain university courses from the 2028/29 academic year, with maintenance loans also set to rise with inflation from 2026/27. A government spokesperson defended the current system, stating that threshold freezes protect taxpayers and students, while the finance system safeguards lower-earning graduates by tying repayments to income and cancelling outstanding loans at the end of repayment terms.
Despite these measures, Gibson remains uncertain about his financial future. "I want to be in a position where I'm earning enough to pay the loan off, but I don't know if I'll ever be able to pay the full balance off," he admitted, adding that he avoids checking his debt balance to manage the psychological burden.
As graduate debt continues to rise and job opportunities shrink, cases like Gibson's underscore the pressing need for systemic reforms to support young professionals entering the workforce.
