6.5,000 graduates now have 100,000 student loan debt and that number is growing
Many students will not finish paying off their loan debts
The number of UK graduates who owe over £100,000 in student debt has risen from 200 to 6,531 in a single year.
That’s an increase of over 3,000% and, tragically, it shows no signs of slowing down.
High interest rates and stagnating wages are believed to be behind this increase in debt.
According to Sutton Trust, British graduates have the most student debt in the English-speaking world. Cumulatively, £161 billion is owed by 5.6 million UK graduates to the Student Loan Company.
A student who completed their degree in 2021 and earns £30,000 a year will pay back £244 this year but rack up £976 in interest.
The Institute for Fiscal Studies estimates that only one in ten graduates will fully pay off their student debt within the 30-year window before it is erased.
Even so, many graduates will end up paying back far more than they borrowed in the first place. A graduate actually owes the Student Loan Company £175,830, the largest debt of any student.
National Union of Students Vice President Hillary Gyebi-Ababio said The temperature“Student debt and financial insecurity are on the rise, and NUS research has identified that more than two in three students worry about their ability to manage their finances.
“We hear of students who can’t even afford to go to their university library, and we know that students rely on buy-now, pay-later loans from companies like Klarna, which which only aggravates the debt crisis.”
Universities minister Michelle Donelan added: “The government has always been clear that where it can help drive up prices we will, and I will always strive for a fair deal for students, which is why we have reduced the interest rate on student loans from the expected 12%.
“The government has always been clear that where it can help with rising prices we will, and I will always strive to get a fair deal for students, which is why we reduced the interest rate on student loans from the planned 12%.
Featured Image: Shutterstock/ Catherine DaSilva (edited)
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