Student loan debt in the UK could be a major factor deterring young people from starting families, Conservative leader Kemi Badenoch has warned.
Speaking to newsmen, she described the current system as a “huge burden” that prevents many graduates from feeling financially secure, a situation she said could influence decisions about parenthood.
Badenoch revealed that if she had been forced to take out a Plan 2 student loan, her debt would have been around £100,000, a sum she believes would have taken “forever” to pay off.
She reflected on how such debt might have affected her personal life, saying that obtaining her first mortgage at 27 would likely have been impossible under the current loan system. “I might not have got my first flat.
That might have been harder. I met my husband, who lived near me, with that first flat. I might not have even met the person that I was with,” she said, emphasizing how student debt carries consequences beyond finances.
Badenoch suggested that the impact of student loans may extend to the country’s birth rate. “I wouldn’t be surprised if indirectly it is affecting people’s timing in terms of starting a family.
Most people don’t want to start a family until they feel financially secure, and this is one of the things that I think is creating a huge burden for a lot of young people,” she said. She stressed that she tries to put herself in the shoes of today’s 26- or 27-year-olds and understands the financial pressures they face.
The Conservative leader also shared concerns about her own children, noting that her oldest, who is 13, will be 18 in five years. “I’m thinking very much about the future, and I want people to know that if we just keep focusing on what happened yesterday, we’re never going to be able to give a better future for young people,” she said.
Badenoch highlighted her own experience with student loans, which took her eight years to repay, calling the thought of “still paying it now and it not getting smaller… absolutely horrendous.”
Currently, Plan 2 loans, taken out by students attending university between 2012 and 2023, charge interest at the rate of RPI (retail prices index) inflation plus up to three percent depending on graduate earnings.
Following last year’s budget by Rachel Reeves, the salary threshold for repayments is frozen for three years, meaning some graduates could end up paying more.
Badenoch criticized the value of certain courses, proposing that money for student loan relief could come from programs that offer “very very poor value” and do not require a degree. She cited examples such as horology (clock making) and floral arrangement, suggesting these should be taught through apprenticeships rather than three-year university degrees.
“You don’t need a three-year degree and writing essays to do that. Floral arrangement… these are not university degrees,” she said. She argued this system is unfair not only to students, who struggle with unpayable debts, but also to taxpayers, who ultimately fund loans that are never repaid.
On the policy front, the Conservatives have pledged to limit interest on student loans to RPI only. Badenoch said she is open to discussions about making repayments easier, including debating financial expert Martin Lewis, who has previously highlighted issues with the current system.
“He is looking, I think, at how do we make repayments easier. I’m looking at the whole system, and where are the areas that need change,” she explained.
A government spokesperson defended current protections, noting that lower-earning graduates are safeguarded and that outstanding loans and interest are cancelled at the end of repayment terms.
“Threshold freezes have been introduced to protect taxpayers and students now, alongside future generations of learners and workers,” the statement read.
Badenoch’s warning comes amid wider concern about the affordability of higher education in the UK and the financial pressures faced by young families. As student debt continues to rise, experts suggest the psychological impact may be as significant as the financial burden, influencing life decisions such as buying a home or starting a family.
Badenoch’s call for reform underscores a growing debate over the sustainability of student loans.
By addressing high-interest rates and ensuring courses provide genuine value, she argues, the system can support graduates rather than restrict their financial and personal futures. “I want to see change in the system,” she said, emphasizing the need for long-term solutions that relieve both students and taxpayers.
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