New calculations predict more than eight out of ten students will never pay off their loans
Government figures have suggested in the past that 60% of students would earn enough to be able to clear their loans during their working life. But new research, carried out following changes made last year on the amount of interest charged on outstanding student loans, claims that around 85% will fail to pay off their student loan debt.
The new figures were commissioned by the Mail on Sunday, and suggest that when the student loan debts are written off after 30 years they will create a new financial burden for the country.
Government figures have suggested in the past that 60% of students would earn enough to be able to clear their loans during their working life. But new research, carried out following changes made last year on the amount of interest charged on outstanding student loans, claims that around 85% will fail to pay off their student loan debt.
The new figures were commissioned by the Mail on Sunday, and suggest that when the student loan debts are written off after 30 years they will create a new financial burden for the country.
This new student loan “time-bomb” is a result of changes made to the way fees are charged, researchers claim – and in particular to changes in the interest charged on outstanding debt.
Students who started their course before the current academic year pay 1.5 per cent interest a year. But those who began college or university last autumn will have bigger loans – up to £9,000 a year for tuition fees as well as a maximum £5,500 maintenance loan – and must pay a higher rate.
For more details and examples of how students may be affected, click here
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