Analysis · The Telegraph · 20 June 2026
Student Loans Company ‘is behaving like a loan shark’: What It Means for Your Student Loan
Written by Zubair Arshed FIA, Chartered Actuary
Fellow of the Institute and Faculty of Actuaries
Actuarial Post Life and Health Actuary of the Year 2024
The Telegraph reports that the Student Loans Company has been accused of 'behaving like a loan shark'. The phrase is emotive, but it points at real friction: over-repayment through PAYE, interest that outpaces the balance for some, and thresholds frozen while wages climb. Here is what the underlying mechanics actually do to your money.
This analysis responds to reporting by The Telegraph. We recommend reading the original alongside it: Student Loans Company ‘is behaving like a loan shark’ ↗
What was reported?
The headline reports an accusation, not a finding: that the Student Loans Company, the body that administers repayments on behalf of the government, is acting like a loan shark. I have the headline and source only, so I will not put words in the article's mouth. What I can do is explain the recurring grievances that produce this kind of language, because they are all rooted in how the system genuinely works.
'Loan shark' usually signals one of a few things in student loan complaints: money being taken after the debt is already cleared, interest that feels punitive relative to the balance, or borrowers being unable to stop paying quickly even when they want to. None of these are secret. They are features of a PAYE-based collection system bolted onto a loan with statutory interest rules. Understanding the mechanics tells you far more than the label does.