The Conservative plan would cap interest at the rate of inflation (RPI), removing the current system where borrowers can be charged up to RPI plus three per cent, which often causes debts to grow even while repayments are being made.

Ms Badenoch argues this would stop student loans acting like a long-term “debt trap” and help more graduates actually reduce what they owe, with the change being funded by reducing university places by around 100,000 and expanding apprenticeships instead.

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Critics, including the host of The Martin Lewis Money Show Live, say the policy could disproportionately benefit higher-earning graduates and restrict access to university education.

Mr Lewis, who was not scheduled to appear onscreen with Ms Badenoch, took aim at the Conservative Party’s past record when it comes to the student loan regime and their plans to address the crisis.

He said: “If you want to help middle-earning students, the most important thing is that the repayment threshold should have been increased. When the Tories brought this in, it was a gradual contribution system.”

From April 2026, graduates begin repayments once they earn £29,385 a year, coming to £2,448 per month before tax. Graduates repay nine per cent of income above this threshold, not nine per cent of their full salary.

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In response to the financial journalist’s intervention, Ms Badenoch said: “I want to make sure those young people who are paying and paying, and their debt is not going down, get a relief. If you think there is a better way, let’s look into it.”

Mr Lewis added: “Lowering the interest rate now will only help those who can clear within the 30 years, which means lower and middle-earning graduates will not benefit from that change.

“If you have a £1billion to help students, the most direct thing that will help all students is not freezing the repayment threshold, it would be increasing the repayment threshold.”

After his on-air outburst, the Good Morning Britain presenter apologised for interrupting Ms Badenoch and suggested the pair meet in private to “discuss this more calmly”.

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Taking to X, Mr Lewis shared: “Dear Kemi Badenoch, apologies for gate crashing your GMB interview today. Student loans are so life-impacting that I wanted to ensure the key point was made: that financially, if not psychologically, the repayment threshold is a bigger issue than the interest.

“Thank you for being so courteous after the interruption. tou handled it far better than I would have the other way round. I have asked my office to request a meeting, if you are available, to discuss this more calmly.”

Shortly after, the Tory leader posted: “Really good to debate Martin Lewis this morning. We both want to see the student loan burden brought down, while Labour hike it up. I’m sticking up for young people in the student loan trap, because no one else in politics is.”

Last year, Chancellor Rachel Reeves froze the repayment threshold for Plan 2 loans at £29,385 until at least 2029, meaning graduates will start repaying sooner in real terms as wages rise.