56% of graduates will be repaying student loans in their fifties

By Helen Gradwell

According to research by the Institute of Fiscal Studies, over half of graduates will still be paying off student loans in their fifties. This comes as maximum annual tuition fees are set to rise to £9,000.

The average graduate debt stands at £22,127 at the moment - but it's set to rise to £37,658 once the fees rise in September 2021. Although some institutions will charge less, 64% of students are set to be charged the full £9,000 tuition fee.

The report found that it was likely that 56% of graduates would be repaying their loans for thirty years - and after this time it will be written off. This means that they will be at least 52 years old by the time their loan is cleared.

So who will be hit the hardest? As the Manchester Evening News reports, middle-class students will experience the highest levels of debt. This is because students from families earning £43,500 each year would not qualify for a student grant - but may still need to take out the maximum living-cost loan.

Those from poorer families may accumulate the lowest amount of debt - as they might avoid the institutions that charge the highest fees. They may also be eligible for grants and other funding. Wealthier students might not have to take out the maximum loan in the first place, which would obviously reduce their graduate debt.

Image © iStockPhotos / Suprijono Suharjoto

Tags: loans, student loans, student debt, education

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