Latest news with #StudentLoansCompany
The Guardian
13 hours ago
- Business
- The Guardian
Students in England now graduate with average debt of £53,000, data shows
Students in England are finishing their degrees with government loans averaging £53,000, a jump of 10% in a year, as they increase their borrowing to meet the rising cost of living. The Student Loans Company (SLC) has released figures showing individual loan balances were £5,000 higher in 2024-25 than a year earlier, when the average in England was £48,270. In comparison, students in Scotland – where undergraduate tuition remains free for local students – finished with just £17,000 in government loans. Those in Northern Ireland accrued £28,000 in debt and those from Wales £39,470. Rising costs also mean more students are taking on paid work during term time. A survey published by the Higher Education Policy Institute found 68% of full-time students worked for an average of 13 hours each week, the highest rate in the decade the survey has been conducted. The SLC reported that 62% of former students who are liable to repay their loans are in the UK tax system, with nearly 3 million (40%) making repayments averaging £1,100 in 2024-25. The government's total student loan book for England has hit £266bn, up from £64bn 10 years ago after the introduction of £9,000 annual tuition fees and loans. That figure will rise more quickly from next academic year after the government raised the tuition fee for domestic students from £9,250 to £9,535 from September. The extra income is unlikely to solve higher education's financial woes, as the government plans to reduce the number of international students and competition between universities for domestic students intensifies. Research by the National Centre for Entrepreneurship in Education found that a quarter of the sector's leaders say their institution will need a 'complete overhaul' to survive the crisis. More than half of the leaders surveyed said financial stability was now their 'top institutional priority', while 28% said that international student recruitment was their most important activity. A new report by the Tony Blair Institute found that as tuition fees from UK students have been eroded by inflation, falling by nearly a third in real terms since 2012, many universities now rely on international student fees to cross-subsidise courses for domestic students. The institute warned that a group of universities are now vulnerable to changes to student visas that the UK government is considering as part of its immigration white paper, including a 6% levy on tuition fees, stricter compliance regulations and a reduction in the amount of time international students can spend working in the UK after completing their course. Alexander Iosad, the institute's director of government innovation policy, said universities with lower international rankings and former polytechnics had weaker finances and were most reliant on international students, putting them most at risk from any visa changes. The report says: 'As the government seeks to reform the immigration system, it is worth considering the interplay of these changes with the broader need to reform the higher education funding system so that it is put on a more sustainable basis.'
Yahoo
12-06-2025
- Business
- Yahoo
‘I'm a 72-year-old student. Labour shouldn't pull the plug on university loans'
Carole Taylor is preparing to start her second year of university in September. But she's not a typical student – she's 72. 'I've been retired. It's quite boring,' she says. 'You join things, I am an avid joiner of things, and nothing is very important because everybody is on the retirement wheel. It very quickly descends into talking about health problems.' The grandmother-of-two is studying English Literature and Creative Writing at the University of East Anglia. To fund her tuition fees, Taylor has taken out a student loan. Currently, a year's tuition for a student in England is £9,250, but this is set to rise in September to £9,535. But from 2027, students like her – those aged over 60 – will no longer be able to take out government-backed loans to cover their university fees. Taylor hopes that she will be able to finish her degree before that, but says she's frustrated for others who won't get the same opportunity. 'It's just very hard to think of them stopping it. Don't pull the plug on us! 'We're a learning, growing, thriving group of people who don't want to be consigned to the care system just yet.' Last year, more than 1,000 students over the state pension age of 66 borrowed from the Student Loans Company (SLC) to cover their fees, data provided to The Telegraph under Freedom of Information rules revealed. More than 3,800 students over the age of 60 took out loans, with 1,824 also taking out maintenance loans. Since 2020, 18,127 loans have been taken out by students over the age of 60. Around £20bn a year is loaned to 1.5 million students, according to a briefing by the House of Commons. The value of outstanding loans is forecast to hit £500bn by the late 2040s, government predictions show. They are only repaid once the graduate earns over a certain threshold, which is currently £25,000. The outstanding loan is then wiped out either 30 or 40 years after the degree is finished – depending on when the student started. For older students, this means that loans are often not repaid at all. The outstanding loan balance for those aged over 60 is close to £50m, according to the SLC. The 'Lifelong Learning Entitlement' will replace the existing higher-education funding system and will provide all new learners with a tuition fee loan entitlement to the equivalent of four years of post-18 education. But tuition fee loans for those aged over 60 will be specifically banned. Taylor left school at 16 and went to work for the gas board with her mother, before moving to Norwich and having her children. She did a foundation year before starting her degree because she didn't have A-levels, so she has already been studying for two years. She planned to do a master's degree, if she could afford it, once she had finished her undergraduate studies. But she won't get any government funding to do it because people aged over 60 are not eligible for student loans to fund postgraduate courses. She says: 'I never entered into it thinking, 'Oh great, I've got a freebie, I don't have to pay this back.'' Taylor says that she has a plan to repay her loans. Having lost her son Jonathan to addiction, she did a counselling course in 2009, and then did voluntary work in prisons. She wants to create a series of books for children of prisoners and addicts. Existing schemes allow prisoners to record video messages of themselves reading books for their children to play before bed, as she knows from her previous experience in the system. 'I started working in rehab just after he died,' she says. 'It was very, very difficult. It's something that hits you all the time.' Taylor says the work helps her feel close to her son. She's won some funding from the university to help develop her idea further, and she hopes to turn it into a viable business. Currently, student loans are wiped at death. But Taylor suggests that older students might be happy to leave a contribution in their will to pay down their debt – a possibility she thinks hasn't been properly investigated. 'A lot of older students are happy to contemplate paying their tuition loans back in time. I think some people will factor it into their wills,' she says. The septuagenarian says that the studying keeps her active. She walks 45 minutes to campus each morning and she says being around younger students is very rewarding. 'The university has been terrific. They've been very welcoming. I find no problem with younger students, they're all very supportive, very friendly and very open. I feel that, as mature students, we provide an anchor for younger students who are coming into student life and leaving home for the first time,' she says. Professor Ian Pickup, interim deputy vice-chancellor at the Open University, said: 'The decision to end access to tuition fee loans for over 60s from January 2027 will work against the need to help support older adults, particularly those in work, to access education and training to upskill, retrain and update their skills. 'There needs to be further consideration about how to support this cohort in accessing the skills offered by higher education if they are to become unable to access funding via the student finance system at a time when the population is ageing and the country is striving for economic growth.' A Department for Education spokesman said: 'This Government is committed to breaking down barriers to opportunity and boosting economic growth, ensuring we have a workforce with the skills for the 21st century. This includes supporting older students who want to go to university to reskill. 'However, we are also committed to maintaining a sustainable student finance system which is fair to students and to the taxpayer. 'University is not the only option for older learners. Despite the challenging fiscal environment we have inherited, we are spending over £1.4bn in the next financial year on the Adult Skills Fund.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
22-05-2025
- Business
- Yahoo
Labour to ban over-60s from taking out student loans
Did you go to university in your 60s? We want to hear if it was a success or not. Get in touch with us money@ Labour is set to ban over-60s from taking out student loans after taxpayers were saddled with £50m in unpaid debt. A shake-up of higher education funding in England will end a clause which allows older learners to take out loans which they are unlikely to ever repay. Last year, more than 1,000 students over the state pension age of 66 took money from the Student Loans Company (SLC) to cover their fees, data provided to The Telegraph under Freedom of Information rules revealed. More than 3,800 students over the age of 60 took loans, with 1,824 also taking out maintenance loans. Since 2020, 18,127 loans have been taken by students over the age of 60. This means that some pensioners could have received as much as £15,829 in government support, with a full maintenance loan on top of a full new state pension. The outstanding balance for those over 60 was £49,011,160. It comes as Labour doubles down on a Sunak-era commitment to ban those over the age of 60 from taking money from the Government to pursue degrees. The 'Lifeline Learning Entitlement' will replace the existing higher-education funding system and will provide all new learners with a tuition fee loan entitlement to the equivalent of four years of post-18 education. A spokesman for the Department for Education said: 'From January 2027, tuition fee loans will no longer be available to those aged 60 and over.' Tom Allingham, of Save the Student, which provides financial advice to undergraduates, said: 'While the current system creates a generational divide – students aged 60-plus are far less likely to repay their loans, so for many, their degrees are effectively free – we believe the decision to limit student loans to the under-60s only is a step backwards, as it makes it much more difficult for older students to pursue higher education. 'Instead, we believe tuition fees should be abolished, allowing students of any age to gain a degree free of charge.' Student loans can be taken out to cover tuition fees – which are set to rise to £9,535 in September – and living costs. The amount that can be borrowed depends on the financial situation of the student in question, and the loans are not repaid until graduates earn over a certain threshold. This means that those aged more than 60 when they take out loans are unlikely to repay their debt at all – unlike those who complete their studies when they're younger. The average graduate in England last year was £48,470 in debt when they started repaying their loan. The ten most indebted students owe a collective £2.7m, with one on the hook for nearly £300,000 for their studies. Liz Emerson, of the Intergenerational Foundation think tank said: 'While lifelong learning should be open to all who have never been able able to access higher education before, there is an obvious intergenerational unfairness if younger generations have to continue to pick up the bill for these older students who will obviously never pay back their student loans. 'This is another subsidy from young to old.' Approximately £20bn a year is loaned to 1.5 million students, according to a briefing by the House of Commons. The value of outstanding loans is forecast to hit £500bn by the late 2040s, government predictions show. Debts to the SLC are wiped entirely after either 30 or 40 years, depending on when the loan was taken out. A Department for Education spokesman said: 'This Government is committed to boosting opportunity and economic growth by building a skilled workforce, while ensuring the student finance system remains fair and sustainable.' 'The dire situation we inherited has meant this Government must take tough decisions to put universities on a firmer financial footing, so they can deliver more opportunity for students and growth for our economy through our Plan for Change.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
22-05-2025
- Business
- Telegraph
Labour to ban over-60s from taking out student loans
Did you go to university in your 60s? We want to hear if it was a success or not. Get in touch with us money@ Labour is set to ban over-60s from taking out student loans after taxpayers were saddled with £50m in unpaid debt. A shake-up of higher education funding in England will end a clause which allows older learners to take out loans which they are unlikely to ever repay. Last year, more than 1,000 students over the state pension age of 66 took money from the Student Loans Company (SLC) to cover their fees, data provided to The Telegraph under Freedom of Information rules revealed. More than 3,800 students over the age of 60 took loans, with 1,824 also taking out maintenance loans. Since 2020, 18,127 loans have been taken by students over the age of 60. This means that some pensioners could have received as much as £15,829 in government support, with a full maintenance loan on top of a full new state pension. The outstanding balance for those over 60 was £49,011,160. It comes as Labour doubles down on a Sunak-era commitment to ban those over the age of 60 from taking money from the Government to pursue degrees. The 'Lifeline Learning Entitlement' will replace the existing higher-education funding system and will provide all new learners with a tuition fee loan entitlement to the equivalent of four years of post-18 education. A spokesman for the Department for Education said: 'From January 2027, tuition fee loans will no longer be available to those aged 60 and over.' Tom Allingham, of Save the Student, which provides financial advice to undergraduates, said: 'While the current system creates a generational divide – students aged 60-plus are far less likely to repay their loans, so for many, their degrees are effectively free – we believe the decision to limit student loans to the under-60s only is a step backwards, as it makes it much more difficult for older students to pursue higher education. 'Instead, we believe tuition fees should be abolished, allowing students of any age to gain a degree free of charge.' Unpaid debt Student loans can be taken out to cover tuition fees – which are set to rise to £9,535 in September – and living costs. The amount that can be borrowed depends on the financial situation of the student in question, and the loans are not repaid until graduates earn over a certain threshold. This means that those aged more than 60 when they take out loans are unlikely to repay their debt at all – unlike those who complete their studies when they're younger. The average graduate in England last year was £48,470 in debt when they started repaying their loan. The ten most indebted students owe a collective £2.7m, with one on the hook for nearly £300,000 for their studies. Liz Emerson, of the Intergenerational Foundation think tank said: 'While lifelong learning should be open to all who have never been able able to access higher education before, there is an obvious intergenerational unfairness if younger generations have to continue to pick up the bill for these older students who will obviously never pay back their student loans. 'This is another subsidy from young to old.' Approximately £20bn a year is loaned to 1.5 million students, according to a briefing by the House of Commons. The value of outstanding loans is forecast to hit £500bn by the late 2040s, government predictions show. Debts to the SLC are wiped entirely after either 30 or 40 years, depending on when the loan was taken out. A Department for Education spokesman said: 'This Government is committed to boosting opportunity and economic growth by building a skilled workforce, while ensuring the student finance system remains fair and sustainable.' 'The dire situation we inherited has meant this Government must take tough decisions to put universities on a firmer financial footing, so they can deliver more opportunity for students and growth for our economy through our Plan for Change.'
Telegraph
14-05-2025
- Business
- Telegraph
The British graduates with the highest student debt
The 10 graduates with the biggest student debt in Britain owe a collective £2.7m, figures show. The single most indebted student owes the Government nearly £300,000 for courses started in January 2012. All 10 were more than £250,000 in debt for courses beginning between 2010 and 2015, data released to The Telegraph by the Student Loans Company (SLC) under Freedom of Information rules revealed. Experts said that the graduates were likely to have done long courses or multiple degrees, as well as having faced high interest rates. Student loans can be taken out to cover tuition fees – which are set to rise to £9,535 in September – and living costs. The amount that can be borrowed depends on the financial situation of the student in question, and the loans are not repaid until graduates earn over a certain threshold. The average graduate in England last year was £48,470 in debt when they started repaying their loan. Approximately £20bn a year is loaned to 1.5 million students, according to a briefing by the House of Commons. The value of outstanding loans is forecast to hit £500bn by the late 2040s, government predictions show. This is in part because of the interest rate structure on higher earners. Those who started their degrees in 2012 have so-called 'Plan 2' loans, which sees them charged the retail price index (RPI) plus up to three percentage points, and start making repayments once their salaries exceed £28,740. For anybody earning between £28,470 and £51,245, the interest rate increases gradually from 4.3pc to 7.3pc – the higher the salary, the higher the interest rate. Anybody earning over £51,245 is charged the maximum interest rate of 7.3pc. Sarah Coles, of investment platform Hargreaves Lansdown, said: 'It's really unusual to have an outstanding loan balance of £250,000 or more. It will usually mean someone has studied a number of courses in order to rack up the debts. It's also likely to include plenty of interest.' She said that the changes made to student loans in 2023 would mean students pay back more on lower salaries. Those on Plan 5 loans begin repayments at £25,000, and will not have their debt wiped for 40 years. Ms Coles said: 'We have moved from a system where only 27pc of people repaid in full, to one where 65pc of people do. And because they carry it for the longest, upper middle earners will repay the most.' Tom Allingham, of campaign group Save the Student, said: 'The amounts exposed by this data are eye-watering.' Mr Allingham said that even though a graduate could owe as much as £300,000, the repayment terms on student loans would not change. He said: 'The size of your debt has absolutely no impact on the amount you repay each month. Your debt could be £300,000 or £300, but you'd still only repay the same 9pc of your salary over the threshold.' The campaigner said that because of the lower interest rates on the new Plan 5 loans, it was unlikely that future graduates would see debts as large as current graduates. Those who began their courses from 2023 will pay only RPI on their loans. He said: 'Future graduates will see their loan balance grow more slowly than those in the past, and never have to repay more than they borrowed in real terms.' One way that graduates are avoiding repaying the SLC is by moving abroad. Figures show the body is trying to trace 112,000 'runaway' graduates who live overseas and are not actively repaying their loans, including 73,000 UK natives. They have a total outstanding loan balance of £2bn – or £27,000 each. Tuition fees were introduced by Tony Blair in the 1990s, and initially sat at just £1,000 a year and then £3,000 from 2006. The coalition government controversially tripled fees to £9,000, despite a Liberal Democrat manifesto pledge to do away with the charges. The fees then rose to £9,250 in 2017, and will increase to £9,535 later this year, an increase of 3.1pc. A Department for Education spokesman said: 'These balances are not typical of the vast majority of graduates. 'It is vital that students can be confident the significant investment they make in higher education delivers real value for money and that universities provide teaching and an experience they deserve, to help students pursue a rewarding career. 'It's also important we have a sustainable student finance system that works for both students and taxpayers.'
