Four in ten students may default on their loans

U.K: Four out of ten student loans may never be repaid, amid fears that university funding is becoming unsustainable.

The Treasury is said to be concerned that the new system – which sees students borrow up to £9,000 a year for their course fees – will not recoup its costs.

Officials anticipated that 28 per cent of loans would never be repaid. It is now understood that their estimate stands at 40 per cent.


From last September, the maximum amount universities could charge for tuition was nearly trebled from £3,290 to £9,000. This leaves students with the prospect of £36,000 of debt for a four-year course, before living costs are taken into account.

And graduate salaries have fallen dramatically in recent years, impairing their ability to repay the loans when they start work.

- dailymail.co.uk