Finance Friday: Student Loan Chat, Energy Bills and The $100bn Trade War
Get the popcorn out... trade wars are back, rate cuts are looking shakier and yes - we need to talk about student loans (again).
Hey you,
Student loans are really winding me up now - an entire generation was told that university was the sensible and stable choice. Work hard, get the degree and of course you’ll get the job…
But for so many graduates, this hasn’t been the case and now they’re left with tens of thousands of pounds worth of debt, which to be quite honest… most people will never even pay off.
This isn’t just about interest rates or repayment thresholds anymore, it’s about whether the system still feels fair to the people paying into it. If you ask me, I think the whole thing is crazy.
But anyway, there’s so many people talking about this right now and I want to hear what you think!
Do you think the system needs reform? Please, please let me know in the comments!
On top of this, energy bills are finally easing a little (hooray) and Nvidia has basically said, “Just a reminder, we run the AI world.”
Overall, there’s a lot going on.
Let’s break it down…
Trump’s 15% Tariff Shock
After the US Supreme Court struck down his previous tariffs, Trump announced a new temporary 15% tariff on most imports, using a 1974 trade law. That potentially overrides the UK’s previously agreed 10% deal and Downing Street has responded saying “nothing is off the table”.
Meanwhile, companies like FedEx are lining up to reclaim tariffs already paid, with an estimated $130bn collected under the now-unlawful duties.
Why it matters?
Tariffs are essentially taxes on imports. They usually mean higher prices for consumers and higher costs for businesses. If the UK ends up facing higher export tariffs, it could hurt manufacturing and trade. It also creates uncertainty and markets hate uncertainty.
US Growth Slows, Inflation Edges Up
The US economy grew at 1.4% in Q4, down drastically from 4.4%. Consumer spending has cooled and a government shutdown weighed on activity. At the same time, inflation (PCE) rose to 2.9%.
Why it matters?
Slower growth normally increases the chance of rate cuts, but rising inflation makes that harder. This means that interest rates could stay higher for longer. And because the US sets the global tone, that affects borrowing costs everywhere, including us here in the UK.
Student Loans: Is This Reform or Just Talk?
Kemi Badenoch has proposed cutting interest on Plan 2 student loans to RPI only.
I’m actually speaking about this on breakfast radio this morning and honestly? It doesn’t go far enough. It’s also just an idea.
Why it matters?
Plan 2 loans currently charge RPI + up to 3%. Reducing it to RPI would slow the growth of balances, but it still won’t tackle the bigger structural issues.
Most graduates will never clear their full balance anyway. So the real question isn’t just interest, it’s whether the system needs proper reform rather than tweaks.
I personally think it needs reform.
Netflix vs Paramount: The $100bn Streaming Fight
Netflix has offered $82.7bn for Warner Bros assets, while Paramount has made a bigger offer of $108 billion to buy the entire company, not just parts of it.
Why it matters?
If streaming giants continue to merge, competition shrinks. And when competition shrinks, prices usually rise. So when you start to see that monthly subscription creeping up? This is why.
Energy Bills Will Fall 7%
Ofgem has cut the energy price cap by 7% from April, bringing a typical annual bill to £1,641 (around £117 lower).
Why it matters?
This is good news, but let’s keep some perspective: bills are still far above pre-Ukraine levels. Many households are still in energy debt.
AI: Nvidia Smashes Expectations
Nvidia reported record annual revenue of $215.9bn, with quarterly sales up 73% year on year. Despite China restrictions and investors nerves about AI spending, demand for chips is still booming.
Why it matters?
AI isn’t just hype, it’s infrastructure now.
The scale of spending shows how serious governments and corporations are about AI dominance. If you have exposure to global index funds, Nvidia is likely in there somewhere.
PayPal Becomes a Takeover Target
PayPal’s shares are down 46% over the past year, shrinking its value to around $38bn. It’s now attracting early-stage buyout interest.
Why it matters?
It proves that even former tech giants aren’t immune to competition. Apple Pay and Google Pay are squeezing margins.
Tech leadership changes fast.
Aston Martin Cuts 20% of Workforce
Aston Martin is cutting 600 jobs after losses widened to £493m. It blames weak demand and US tariffs.
Why it matters?
Trade tensions don’t just move markets, they impact jobs. Manufacturing remains vulnerable to global politics.
Manchester United: Profit, But Debt Climbing
Manchester United posted a £32.6m operating profit, but total debt has risen to £1.29bn.
Why it matters?
Revenue helps, but debt servicing costs don’t disappear. A Champions League qualification isn’t just about football anymore, it’s financial survival and crucial for the club’s long-term stability.
Finance Tip of The Week
If your bills drop slightly in April, try not to instantly absorb that saving into everyday spending.
Instead, redirect the difference and top up your emergency fund. Overpay a bit of debt or build a small buffer.
Quick-Fire Round Up
Walmart will pay $100m over gig worker pay claims
Reddit was fined £14.47m for mishandling children’s data
India & France rewrote tax rules to boost large investments
Kalshi banned and fined a trader linked to MrBeast-style betting
US trade deficit widened to $70.3bn
So that’s it from me in February.
We’ve learnt that tariffs are back, student loans are be reopened for discussion and that energy bills are easing.
If i’m being totally honest, it feels like a lot is shifting in the economy at once and we’re all kind of waiting to see where it lands.
But that doesn’t mean we have a reason to panic and that’s exactly why I’ll keep breaking it down for you, here every week.
Have a lovely weekend all.
Abi x
Ps. If you want to hear me chat a bit more about student loans and what I think, check out my latest YouTube video 👇🏼
The student loan system needs reform 100% but as does the wider education and entry level employment system. We need to find a way to incentivise business to help pay down their graduate’s debts in the case of private sector and in the case of public servants, we should reward years of service by paying down their debt. The government can encourage businesses to do this via tax relief on things such as employer NICs - this feels like the right thing to do given we’re in a period of rising youth unemployment and advancements in AI. We also need to provide a diversity of options outside of university and move away from the idea that university is the “best” option and all other options are secondary. Many people in trades should have great technical skills but still can be taught the art of business and entrepreneurship. That doesn’t require a degree but still needs engagement of some form with the knowledge economy. There has to be some form of original thought in our political classes to get a new deal for the younger generations and get this country moving forward.
I feel really mis-sold over my student loan. I was the first year of the nine grand fees and it was never explained properly - never did they present it as “you’ll pay an additional 9% tax rate until you’re 52”. Then they changed the terms several times so more and more income is dragged into tax bands so what we have now bears no resemblance to what we were told in 2011. I’m angry but also feel powerless about the whole thing. I also don’t think we were given a “choice” over uni, certainly then when we didn’t have apprenticeships in the way we do now, we were ENCOURAGED to go to uni, it was the “right” thing to do, and now we’re stuck with this financial burden which seems designed to stop you paying it off