Business

Voluntary Student Loan Repayments Increase in England

Criticism has been directed at the terms of loans originally issued in England and which remain in place in Wales.

New father Luke England is considering setting up a university fund for his baby, but first, he wants to tackle his own student debt by increasing his monthly repayments.

England currently pays £250 per month towards his student loan, and he plans to add an extra £75 to this amount in an effort to clear his debt more quickly.

By making these additional payments, England hopes to reduce his repayment period from 12 years to six years, as he believes this will be beneficial in the long run, given that he would still be paying off the loan for over a decade without the extra payments.

An analysis of data from the Student Loans Company by the BBC has found that the amount of money being voluntarily repaid by graduates to clear their post-2012 student debt has increased.

Between the financial years 2017 and 2025, voluntary repayments by graduates with Plan 2 loans rose significantly, from £141.7m to £491.1m, more than trebling in this period.

Plan 2 loans were introduced for students who started courses in England between September 2012 and July 2023, and they are still available to students in Wales.

Graduates from England who studied in the UK, as well as EU students who studied in England, are among those making voluntary repayments on their Plan 2 loans.

Martin Lewis, founder of MoneySavingExpert.com, has cautioned that only high-earning graduates are likely to benefit from making voluntary repayments, and most should avoid being pressured into overpaying.

England, a 34-year-old chartered surveyor in London, took out a Plan 2 student loan when he started university in 2012, opting for a two-year Higher National Diploma in building surveying at the University of Greenwich.

The annual tuition fees for his course were around £6,000, which meant England was less affected by the £9,000 tuition fee cap rise compared to other students.

As a result, England graduated with approximately £19,500 of debt, significantly less than many of his peers who owed £40,000 or more.

Despite this, England found the interest on his loan to be substantial, which motivated him to start making voluntary repayments from the beginning.

The stress of dealing with his debt was considerable, according to England, who has been trying to manage his finances effectively.

England now earns a high income and has reduced his debt to £16,800, and he believes that even without the voluntary repayments, he would still have paid off his loan before it was wiped.

England's goal is to create a better financial future for himself, and he thinks making early repayments will help him achieve this objective.

He hopes that by the time his loan is paid off, in six years, he can redirect the money he was using for repayments towards his child's future.

England is looking forward to being able to support his child financially once his loan is paid off, and he believes this will be a significant milestone for him.

Martin Lewis warned that many borrowers have been "panicked into overpaying" their student loans, which, in most cases, is not a beneficial strategy, as the money could be better spent elsewhere.

Lewis pointed out that for most borrowers, paying off an extra £1,000 or £2,000 will not make a significant difference in the long run, as the loan will still be wiped after 30 years, and the extra payments will not reduce the overall amount paid.

According to Lewis, only higher-earning graduates are likely to benefit from making voluntary repayments, as they are more likely to clear their debt within the 30-year period.

Lewis criticized Chancellor Rachel Reeves' decision to freeze the Plan 2 repayment threshold at £29,385 for three years, starting from April 2027, calling it "a breach of natural justice".

Reeves argued that the move was necessary to strike a balance between tax and spending, and that it was a fair and proportionate decision.

Welsh First Minister Eluned Morgan announced that Wales would not follow England's lead in freezing the threshold.

Labour MP Luke Charters expressed concerns that the communication around Plan 2 loans could lead to a "mis-selling scandal waiting to unfold".

The Rethink Repayment campaign is advocating for several changes, including reversing the income freezes, capping the interest rate on student loans, and reducing the repayment rate to 5% of earnings above the threshold.

Oliver Gardner, founder of the campaign, stated that the current system makes it extremely difficult for borrowers to pay off their loans, unless they have very high salaries.

Gardner argued that this has created a situation where young people are being burdened with a 30-year tax, which is unfair, as they initially agreed to contribute to the cost of their education, not to be saddled with long-term debt.

As the number of Plan 2 borrowers has grown, so has the amount of money being voluntarily repaid, according to the data.

However, the Student Loans Company does not provide detailed information on the number of borrowers making voluntary repayments or the amounts they are paying.

Hilary Iyoha, a 29-year-old associate at an investment bank in London, earned a high salary and was able to pay off her £11,000 loan last year, after discussing the idea with colleagues who had done the same.

Iyoha decided to pay off her loan to avoid paying interest, and she believes that she and her colleagues are exceptions rather than the rule.

She thinks that most people are not in a position to pay off their loans as quickly as she did.

Charlene Young, a senior pension and savings expert at AJ Bell, suggested that the rise in voluntary repayments may be partly due to high-earning graduates like Iyoha, but also noted that family support likely plays a significant role.

Hilary Iyoha, pictured near her office in Canary Wharf, London — Hilary Iyoha is a high earner and paid off her student debt last year to avoid interest

Young warned that this could exacerbate the existing gap between those who have financial support from their families and those who do not.

She advised caution when considering voluntary repayments, as two-thirds of students who started university in 2022 are expected to have their loans written off, which means that the money could be better spent elsewhere.

Nick Bell, a 74-year-old retired chartered accountant, used a lump sum from the sale of his shares to pay off his son's £51,000 Plan 2 student loan in 2020.

Bell thought it was a sensible decision to help his son avoid the burden of debt.

He believed it was the right thing to do, as he did not want his son to be saddled with the loan.

Alex Stanley, vice president for higher education at the National Union of Students, stated that it is not surprising that graduates who can afford to are making voluntary payments, given the high interest rates on their loans.

Stanley noted that these individuals are fortunate to have escaped a "broken system", while many others remain trapped in debt.

For individuals uncertain about making extra repayments, the Student Loans Company recommends consulting a financial adviser to determine the best course of action.

According to the Department for Education, the current loans system is a product of previous administrations, and the government's current financial situation has necessitated difficult decisions.

A Department for Education spokesperson stated that freezing thresholds is a necessary measure, characterizing it as a "hard but fair" decision that balances the needs of taxpayers and students.

The spokesperson emphasized that the system is heavily subsidized by the government and designed to shield low-earning graduates, noting that high-earning graduates contribute disproportionately to loan repayments compared to non-university attendees or low-earning graduates.

This report was supplemented with additional research by Tom Curd.

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Artist Alleges AirAsia Used His Work Without Permission

A street artist from Penang has reported that one of his artworks has been replicated and featured on the design of an airplane.

A lawsuit has been filed by a Malaysian-based artist against AirAsia and its parent company, Capital A Berhad, alleging unauthorized use of the artist's designs on one of the airline's planes.

A low-resolution image of an AirAsia aircraft with artwork children cycling printed on its side. The passenger plane is pictured parked in an airport — Artist Ernest Zacharevic is sueing AirAsia over the use of a livery on one of its jets in 2024

According to the lawsuit, Ernest Zacharevic, a Lithuanian-born artist residing in Penang, claims that his 2012 street mural, Kids on Bicycle, was reproduced and displayed on an AirAsia aircraft in late 2024 without his permission.

Zacharevic states that the use of his design was unauthorized, and no licensing agreement or consent was obtained, adding that the livery was removed after he publicly expressed concerns about the matter.

The BBC has reached out to AirAsia for a statement regarding the allegations.

In an interview with the BBC on Thursday, Zacharevic recalled that he first became aware of the alleged copyright infringement in October 2024, when he discovered that an AirAsia plane was featuring a livery resembling his artwork.

With over a decade of experience in Malaysia, Zacharevic is known for his roadside murals in Penang, which have become a staple of the local art scene.

One of Zacharevic's notable works is the 2012 street mural Kids on Bicycle, created for a local festival, which features two children on a bicycle integrated into the mural, located in George Town's heritage district.

The mural has become a popular tourist attraction, with many visitors taking photos in front of the iconic artwork.

Zacharevic alleges that his work was reproduced on an AirAsia plane without his knowledge or consent, and he personally witnessed the plane in operation at an airport.

Recalling the incident, Zacharevic expressed his discomfort with the situation, which occurred in 2024.

He took to social media to address the issue, posting a photo of the plane and tagging the airline, suggesting that they needed to discuss the use of his artwork.

A photograph of a wall mural, depicting two children in white tops. The images in painted to show the children seated on a real-life bicycle. — Zacharevic painted Kids on Bicycle, a famous wall mural in Penang, in 2012

Since then, Zacharevic has engaged in discussions with the company, but they have been unable to come to a mutually agreeable resolution.

This is not the first instance of Zacharevic's work being used in connection with AirAsia, as he claims the airline has also used his artwork on a delivery bag for its food services arm.

Court documents reveal that Zacharevic had previously discussed a potential collaboration with AirAsia in 2017, where he would create art for the airline's jets and a mural in one of their offices.

According to the documents, Zacharevic had informed the airline of his work and business rates during these discussions.

The lawsuit asserts that despite being aware of Zacharevic's work and rates, the airline proceeded to reproduce and publicly display one of his notable works, thereby infringing on his copyright and moral rights.

As the largest low-cost carrier in Asia, AirAsia operates over 200 jets to more than 100 destinations, and has recently announced plans to resume flights from Kuala Lumpur to London via Bahrain.

Zacharevic has stated that he will leave it to the court to determine any potential compensation he may be entitled to.

The artist emphasized that he does not consider the use of his artwork to be a mere reference to cultural or geographical associations, but rather a distinct artistic creation.

Zacharevic stressed that his artwork is the result of years of professional training, skill, and labor, and should be recognized as such.

Business

US Businesses and Consumers Bear Brunt of Trump Tariff Costs, According to NY Fed

In 2022, the United States saw a significant increase in collective import tariff rates, with rates rising by more than 300 percent for a range of imported goods.

The modification of tariff agreements by President Donald Trump with several countries had a consistent outcome: increased costs for US-based companies and consumers.

A damp sidewalk in New York City being crossed by men and women carrying shopping bags.

According to a study released on Thursday by the Federal Reserve Bank of New York, the average tariff rate on imported goods increased significantly, rising from 2.6% at the beginning of the year to 13% in 2025.

The New York Fed's research revealed that US companies absorbed approximately 90% of the costs associated with the higher tariffs imposed by Trump on goods from countries such as Mexico, China, Canada, and the European Union.

The Federal Reserve Bank of New York stated that "the majority of the economic burden of the high tariffs imposed in 2025 continues to be borne by US firms and consumers."

When tariff rates changed and increased in the previous year, exporting countries did not adjust their prices to mitigate potential declines in US demand.

Instead of lowering prices, exporters maintained their existing prices and transferred the tariff costs to US importers, who subsequently increased the prices of these goods for consumers.

The response of exporters in 2025 was similar to their reaction in 2018, when Trump introduced certain tariffs during his first term, resulting in higher consumer prices with minimal other economic effects, as noted by the New York Fed at the time.

The New York Fed's findings on Thursday are consistent with the results of other recent analyses.

The Kiel Institute for the World Economy, a German research organization, reported last month that its research indicated "nearly complete pass-through of tariffs to US import prices."

By analyzing 25 million transactions, Kiel researchers discovered that the prices of goods from countries like Brazil and India did not decrease.

The Kiel report noted that "trade volumes declined" instead, indicating that exporters preferred to reduce the quantity of goods shipped to the US rather than lower their prices.

The National Bureau of Economic Research also found that the pass-through of tariffs to US import prices was "nearly 100%", meaning that the US bears the cost of the price increase, not the exporting countries.

Similarly, the Tax Foundation, a Washington DC-based think tank, found that the increased tariffs on goods in 2025 resulted in higher costs for American households.

The Tax Foundation considered tariffs as a new tax on consumers and estimated that the 2025 increases resulted in an average cost of $1,000 (£734.30) per household, with a projected cost of $1,300 in 2026.

The Tax Foundation reported that the "effective" tariff rate, which accounts for decreased consumer purchases due to higher prices, is now 9.9%, representing the highest average rate since 1946.

The Tax Foundation concluded that the economic benefits of tax cuts included in Trump's "Big Beautiful Bill" will be entirely offset by the impacts of the tariffs on households.

Business

BBC Reporter Exposed to Cyber Attack Due to Vulnerabilities in AI Coding Tool

The demand for vibe-coding tools, which enable individuals without coding experience to develop applications using artificial intelligence, is experiencing rapid growth.

A significant and unresolved cyber-security vulnerability has been identified in a popular AI coding platform, according to information provided to the BBC.

BBC reporter's laptop wallpaper reads "you are hacked" with an image of a robot skull — The hacker was able to hijack a BBC reporter's laptop to upload this wallpaper

The platform, known as Orchids, utilizes a "vibe-coding" approach, enabling individuals without technical expertise to create apps and games by inputting text prompts into a chatbot.

In recent months, such platforms have gained widespread popularity, often being touted as an early example of how AI can rapidly and affordably perform various professional tasks.

However, experts warn that the ease with which Orchids can be compromised highlights the risks associated with granting AI bots extensive access to computers in exchange for autonomous task execution.

Despite repeated requests for comment, the company has not responded to the BBC's inquiries.

Orchids claims to have a user base of one million and boasts partnerships with top companies, including Google, Uber, and Amazon.

According to ratings from App Bench and other analysts, Orchids is considered the top program for certain aspects of vibe coding.

Cyber-security researcher Etizaz Mohsin demonstrated the platform's security flaws to the BBC.

To test the platform's security, a spare laptop was used to download the Orchids desktop app and initiate a vibe-coding project.

A request was made to the Orchids AI assistant to generate code for a computer game based on the BBC News website.

Screenshot of the Orchids app. Shows computer code being created in an action window and folders and chat box — Orchids is one of many AI agent platforms that writes code for users who have no experience

The AI assistant automatically compiled code on the screen, which, without prior experience, was unintelligible.

By exploiting a specific cyber-security weakness, Mohsin was able to access the project and view and edit the code.

Mohsin then added a line of code to the project, which went unnoticed.

This action apparently allowed him to gain access to the computer, as evidenced by the subsequent appearance of a "Joe is hacked" notepad file on the desktop and a changed wallpaper featuring an AI hacker image.

The potential implications of this hack on the platform's numerous projects are significant.

A malicious hacker could have easily installed a virus on the machine without any action required from the victim.

Sensitive personal or financial data could have been compromised.

An attacker could have accessed internet history or even used the computer's cameras and microphones for surveillance.

Most cyber-attacks involve tricking victims into downloading malicious software or divulging login credentials.

This particular attack was carried out without any involvement from the victim, known as a zero-click attack.

Mohsin stated that the vibe-coding revolution has introduced a new class of security vulnerabilities that did not previously exist, highlighting the risks associated with relying on AI to handle tasks.

The concept of AI handling tasks autonomously comes with significant risks, according to Mohsin.

Mohsin, a 32-year-old from Pakistan currently residing in the UK, has a history of discovering dangerous software flaws, including work on the Pegasus spyware.

Etizaz Mohsin standing at the podium giving a presentation. He has black hair and wearing a brown leather jacket and jeans — Etizaz Mohsin speaking about cyber-security at the prestigious BlackHat conference

Mohsin discovered the flaw in December 2025 while experimenting with vibe-coding and has since attempted to contact Orchids through various channels, sending around a dozen messages.

The Orchids team responded to Mohsin this week, stating that they may have missed his warnings due to being overwhelmed with incoming messages.

According to the company's LinkedIn page, Orchids is a San Francisco-based company founded in 2025 with fewer than 10 employees.

Mohsin has only identified flaws in Orchids and not in other vibe-coding platforms, such as Claude Code, Cursor, Windsurf, and Lovable.

Nonetheless, experts caution that this discovery should serve as a warning.

Professor Kevin Curran of Ulster University's cybersecurity department notes that the main security implications of vibe-coding are the potential for code to fail under attack due to a lack of discipline, documentation, and review.

Agentic AI tools, which perform complex tasks with minimal human input, are increasingly gaining attention.

A recent example is the Clawbot agent, also known as Moltbot or Open Claw, which can execute tasks on a user's device with little human intervention.

The free AI agent has been downloaded by hundreds of thousands of people, granting it deep access to computers and potentially introducing numerous security risks.

Karolis Arbaciauskas, head of product at NordPass, advises caution when using such tools.

Arbaciauskas warns that while it may be intriguing to see what an AI agent can do without security measures, this level of access is also highly insecure.

He recommends running these tools on separate, dedicated machines and using disposable accounts for experimentation.

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