The UK is sitting on a £292 Billion mountain of student debt—a drag on a generation and a looming crisis for public finances.

Past attempts to manage this have failed spectacularly.

For instance, the government sold £890 million of loans for just £160 Million in 2013, and another £3.5 Billion tranche for £1.7 Billion in 2017.

As the National Audit Office has pointed out, these fire sales offered poor value for money, short-changing the taxpayer to achieve a short-term accounting gain.

It's time for a common-sense reset.

A new approach should focus on two key principles: fairness and fiscal responsibility.

Incentivise Early Repayment: Offer a significant discount to graduates who can pay off their loans early. This accelerates the recovery of Billions, provides immediate relief to individuals, and reduces the long-term burden on the state.

Cut the Interest: Lower the interest rates charged on all outstanding loans. This stops debt from spiralling unfairly and ensures that repayments actually reduce the principal, giving graduates a realistic path to becoming debt-free.

This isn't a bailout; it's a smart strategy to manage a national liability. It offers a fair deal to graduates while responsibly tackling a debt crisis that cannot be ignored.

Britain needs to harness the energy of the new graduates and motivate and incentivise them to grow the UK economy and prosper.