UK student loans are said to cost the poor more than the rich because lower earners repay for longer. Build a financial model to investigate whether this claim holds up.
In the UK student loan system, graduates repay 9% of earnings above a threshold. Higher earners clear their debt faster, while lower earners may repay for the full 30-year term before the balance is written off — often having paid more in total due to accumulated interest. Critics argue this makes the system regressive: effectively a 30-year tax on lower-income graduates. This exploration asks students to build financial models comparing total repayment across different salary trajectories. It connects percentage calculations, compound interest, sequences and series, and statistical modelling to a live political and economic debate.