Significant increase in student loans
July 5, 2007
Most students and former students know what a financial struggle it can be to be in full time education, and this is reflected in the rising level of student loans and finance being taken out in the UK.
Recent figures have indicated that there has been a significant increase in the level of student loans over the last year across England, Scotland, Wales, and Northern Ireland. These finding were reported by the Students Loan Company, with officials confirming the rise in student borrowing over the past year.
At the end of the last financial year for 2006/2007 student borrowing levels stood at £3.4 billion, and this compared to £2.9 billion for the previous financial year for 2005/2006.
Figures suggest that nearly £400 million of the amount borrowed in the last financial year was spent on tuition fees. For many, the rise in student borrowing raises the same concern as the increased level of consumer debt in the UK, and means that more and more students are finding themselves in significant levels of debt upon leaving university. Charity group Credit Action stated that many students that get into debt find themselves relying on finance for years to come, even after leaving university and entering into their chosen career.
However, officials state that there could be a variety of reasons for the rise in student borrowing. One such explanation is the increased number of applications for places at universities throughout the UK, which reflects the increasing number of people that are entering into full time higher education and therefore requiring some form of student finance.
One official stated: “The number of applicants applying for university in 2007 is up by six per cent compared to 2006. Providing loans and grants for students’ living costs and tuition fees underpin the government’s policy to both increase and widen participation in higher education.”
Alan Wright
5th July 2007
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