Graduates 'having trouble paying back student loans'

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Graduates 'having trouble paying back student loans'

Thu 23rd Jul 2009

Around 50 per cent of students who attended university following Labour's rise to power do not have enough money to pay back their student loans.

This is according to new data from the Student Loans Company, which shows that 160,000 more people have fallen below the £15,000 income threshold required to begin contributing to their loan repayments within the last year.

At present, 702,000 of the 1.4 million graduates who began their university courses in 1998 or later are not earning enough to pay back their loans, reports the Daily Mail.

Additionally, the wages of one-quarter of these individuals have never risen above the £15,000 barrier since they left university, the figures show.

"It's depressing that so many graduates are earning far below what would usually be considered a graduate salary. This figure is bound to rise as the new cohort enters a tough jobs market," said Liberal Democrat higher education spokesman Stephen Williams.

In February, the Universities' Central Admissions Service revealed that, compared to 2008 figures, there has been a 7.8 per cent rise in the number of people applying for university places this year.

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