UK Student Loans Are ‘Illegal And Unenforceable’ Says Top Lawyer


A top lawyer has declared university student loans as ‘illegal’ and ‘mis-sold’ meaning that graduates should be reimbursed.

Estelle Clarke, a former City lawyer, has argued that the government loans are sold deceptively, charging students an extortionate interest rate, the Independent reports.

Students graduating from university this year face rates of 4.6 per cent, but because of how unpaid charges are carried over, the rates are closer to 6.6 per cent.


Clarke said:

Extortionate funding costs and unfair terms are forced upon students in unknown ‘agreements’ which break the law. If students ask to negotiate, they meet a brick wall.

It turns out that Brexit could hold a positive outcome for us young people, as ‘The recent Article 50 Judgment restated Equity’s priority and government’s acceptance of this’.

The UK has old and specialised laws of Equity that protect people from being exploited by ‘unconscionable’ agreements.


The reason interest rates end up higher than stated is because every month, unpaid charges are added on to the original loan.

Clarke warns of a ‘national scandal’ that will show how ‘student loans are lining the pockets of third party fat cats’.

She said:

Student loans should have interest removed or charges capped at 1.25 per cent, not compounding. Loan agreements should be given to students so they know what they are signing.

When such reforms are done and investor profit stops being students’ responsibility, student loans will start being legal.


A representative for the Department of Education defended the interest rates, saying that they were sustainable in the long term and that ‘there is extensive information and support to help borrowers understand the loan terms, and they must sign a declaration that they have done so’.


Clarke announced that ‘Theresa May must repay students the amounts they overpaid David Cameron’s government’.

I can get on board with that.