Over 50,000 university graduates have branded the student loan system a "tax on ambition" in one of the largest response rates ever recorded by a parliamentary inquiry.
The Treasury Select Committee (TSC) said current and former students delivered an overwhelmingly negative verdict on tuition fees and maintenance loan arrangements.
It comes amid rising living costs and growing concerns about youth unemployment.
Graduates told MPs they felt the current system punished hard work and discouraged career progression as repayment obligations continue to increase.
The survey found that 82 per cent of respondents considered their student loan repayments more burdensome than they had expected when taking out the loans.
A further 93 per cent described the overall system as unreasonable.
Many respondents directed criticism at interest rates, which can reach retail price inflation plus three percentage points for plan 2 borrowers earning above £52,885.
The inquiry also highlighted concerns surrounding combined marginal tax rates for higher earners, with some graduates facing effective rates of up to 77 per cent when student loan repayments are combined with income tax obligations.
The highest rates particularly affect graduates with postgraduate loans earning more than £100,000.
Around half of graduates regret their student loans
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Several respondents said the structure had altered their career decisions, with some refusing promotions or additional overtime because of the financial impact.
One graduate said: "It doesn't really make sense to work all those extra hours for little reward".
Survey participants also criticised Chancellor Rachel Reeves over the Government’s decision to freeze the student loan repayment threshold at £29,385.
Under current rules, graduates repay nine per cent of earnings above the threshold.
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Graduates reported difficulties building savings and securing mortgages because of their outstanding debt obligations
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Respondents described the policy as a "stealth tax" and argued commercial lenders would not be permitted to retrospectively alter repayment terms in a similar manner.
Dame Meg Hillier, chair of the Treasury select committee, said MPs must pay attention to the strength of feeling expressed through the inquiry.
She said: "The massive scale and strength of frustration and upset is powerful and, as MPs, we must listen".
Dame Meg added that Britain’s economic prosperity depended on younger workers feeling incentivised to work and progress in their careers.
She warned too many people in their twenties and thirties now felt "overburdened and demoralised" by student debt.
Prime Minister Sir Keir Starmer has previously pledged to examine ways of making the student loan system "fairer".
The financial impact of student debt extended beyond monthly repayments for many respondents, according to the survey findings.
More than two-thirds said loan repayments had affected their ability to plan for the future.
Approximately half of respondents said they would not choose to take out a student loan again if faced with the same decision today.
However, 93 per cent also acknowledged they would have been unable to attend university without financial support.
Ollie Gardner, from campaign group Rethink Repayment, said the current structure was stopping many graduates from reaching major life milestones.
"The punitive student loan system is holding young people back".
He added the inquiry "sends a clear message to politicians" about the financial pressures facing graduates across the country.