Scarlett Kendrick, a 23-year-old graduate from Hertford, has applied for over 50 jobs since completing her degree in sports and exercise science from Loughborough University in July 2024. Despite her efforts, she has struggled to secure a graduate-level position and is currently employed part-time at a supermarket, earning below the threshold for student loan repayments. Meanwhile, her student debt, initially around £60,000, has increased by approximately £10,000 due to accumulating interest.

Kendrick’s loan falls under the Plan 2 scheme, where interest is linked to the retail prices index (RPI) plus up to 3 percentage points, depending on income. With the current RPI at 3.2 percent, interest rates have reached as high as 7.7 percent in recent years. Although the government announced a cap of 6 percent on student loan interest rates for the 2026-27 academic year, many borrowers still find that their payments do not cover the accruing interest. This phenomenon, alongside a frozen repayment threshold, has drawn criticism from graduates who feel trapped by the rising debt despite limited income.

Following a five-month trip through Australia, New Zealand, and Southeast Asia after leaving university, Kendrick returned to the UK with the intention of starting a career in London within six months. Instead, she has faced a challenging job market in which entry-level roles are increasingly scarce, partly due to the growing use of artificial intelligence in recruitment processes. Kendrick reports that many job applications have been screened out automatically by AI, often for failing to include specific keywords, making it difficult for candidates to understand and adjust to the selection criteria.

In addition to her supermarket role, Kendrick has taken on unpaid positions in marketing, public relations, and events to strengthen her resume. She currently benefits from living at home rent-free but expresses concern about financial stability and long-term prospects, including the ability to enter the housing market. “I can’t begin to think about getting on the property ladder when I don’t have a steady income,” she said.

The difficulties faced by Kendrick are emblematic of broader issues affecting young people in the UK. Nearly one million individuals aged 16 to 24 are reported as not being in education, employment, or training, a situation exacerbated by technological changes and economic uncertainty. Experts warn that delayed entry into the workforce can have lasting financial consequences. According to the comparison site Finder, a two-year delay in starting a career could reduce lifetime pension savings by £35,000 and delay the ability to save for a house deposit by several years.

Kate Steere of Finder remarked that this generation of graduates is “stuck in the starting blocks,” highlighting how financial insecurity at an early stage creates anxiety about the future and undermines confidence in long-term financial planning. As policymakers and stakeholders examine the sustainability and fairness of the student loan system, experiences like Kendrick’s underscore the real-world impact of current loan terms and labour market challenges on recent graduates.