Projected increase in students not paying off loans

Research by the Institute for Fiscal Studies, on behalf of the Sutton Trust, has concluded that 73% of graduates will not have paid off their student loan by the end of the repayment period, compared with 32% under the old system. Conor Wright, director of research at the Sutton Trust, said “We believe that the government needs to look again at the fees, loans and teaching grants to get a fairer balance”. The report said “In cash terms, we estimate that, on average, graduate will now repay a total of £66,897”, compared to £32,917 which they would have paid back under the old system. The latest government estimate is that 60% of graduates will have some, or all, of their loan written off, up from 40% on the previous system.  

Meanwhile, an Australian "think tank" has suggested that the government should stop writing off student debt when graduates die as a way of making the system more financially sustainable!

[ Source GTAssociates ]