For those in higher education, student loans are often the main source of income for both the paying of tuition fees and for covering living costs. But with tuition fees on the rise, cost of living on the increase and more and more people going to university, the UK’s outstanding loan balance is rocketing.
More than £17 billion is loaned to students every year with the current outstanding student loan balance standing in the region of £160 billion as of March 2021. Its estimated that by the middle of the century, the outstanding balance could be as much as £560 billion!
These figures are eyewatering! But did you also know that the average debt for a graduate that finished their studies in 2020 was £45,000.
The government expects only 25% of these students to pay their loans in full.
To find out more about Student Debt, visit our Student Debt page.