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40% of students will not pay their student loans

Four out of ten students will not earn enough to pay back the full amount of their student loans, research has shown.

A study for the Institute for Public Policy Research revealed 40% of university goers will fail to reimburse the government for their higher education bills, The Daily Telegraph reported.

This is likely to be the result of repayments currently not beginning until graduates’ wages exceed £21,000 and student debt is written off after 30 years.

The research, due to be published next month, suggests reforms are required to lower the amount university students have to pay for the tuition fees, so they have a greater chance of being able to pay these back. Otherwise, the report stated the tuition fee problem will create huge financial problems for the government and is “unsustainable”.

Universities in the UK can charge up to £9,000 for annual tuition fees, which means students studying a three-year course will be liable to a £27,000 fee. However, those studying longer degrees such as medicine, dentistry, veterinary science or architecture  will be more than £45,000 in debt when they finish their higher education.

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