Inquiry finds Government 'mis-sold' 5.8 million student loans worth £200bn

1 sources1 storiesFirst seen 7/7/2026Score25Mixed Progress

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Inquiry finds Government 'mis-sold' 5.8 million student loans worth £200bn.

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The Government has been accused of mis-selling student loans to more than 5.8 million borrowers after a parliamentary inquiry concluded ministers failed to properly explain the true cost of the repayment system.The Treasury Select Committee published its findings on Tuesday, accusing the Department for Education (DfE) of misleading prospective students about how the loans work and describing official communications as "deeply problematic".MPs concluded that several Government communications "amounted to mis-selling", while accusing ministers of choosing the "politically convenient option of loading burdens on to younger generations, hoping that they will not notice".The committee's report increases pressure on Chancellor Rachel Reeves, who earlier this year defended the student loan system as "fair and reasonable", with Labour MPs now calling for reforms.

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A: Inquiry finds Government 'mis-sold' 5.8 million student loans worth £200bn.

B: The Government has been accused of mis-selling student loans to more than 5.8 million borrowers after a parliamentary inquiry concluded ministers failed to properly explain the true cost of the repayment system.The Treasury Select Committee published its findings on Tuesday, accusing the Department for Education (DfE) of misleading prospective students about how the loans work and describing official communications as "deeply problematic".MPs concluded that several Government communications "amounted to mis-selling", while accusing ministers of choosing the "politically convenient option of loading burdens on to younger generations, hoping that they will not notice".The committee's report increases pressure on Chancellor Rachel Reeves, who earlier this year defended the student loan system as "fair and reasonable", with Labour MPs now calling for reforms.

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