The business of student loans
Wednesday 3 July 2024
Exam context
Unit 3.8 - Investment appraisal (payback period)
Unit 3.2 - Sources of finance for universities
In July 2024, the BBC reported a significant increase in UK student debt, with almost 1.8 million people owing at least £50,000 ($63,405). Other key findings from the latest government statistics showed:
Over 61,000 graduates have debts in excess of £100,000 ($126,815).
50 individuals owe more than £200,000 ($253,630).
The highest known student debt now stands at £252,000 ($319,574!)
Although borrowers are given a grace period after graduation, the average balance when repayments start is now £48,470 ($61,467). In addition, with interest rates as high as almost 8%, this has led to rising debt balances despite repayments of student loans.
Source: BBC (Family and Education)
