Criticism of the Student Loan system

A report by the London School of Economics has concluded that nearly everyone fares badly from the student loan system. The report warned that high earning graduates faced an effective tax rate of 51% in their 40s due to debts from university. In addition, due to rise to 6.1% interest accrued upon taking out the debt, medium earners in essential professions, such as teachers will pay back more over their working life than high earners in law and finance. With a typical male teacher paying £133,000 over their working life, compared to £85,000 for a typical lawyer. 

Sally Hunt, head of the lecturers’ union, the UCL, said, “There are no winners under the current student loan system, just different ways to lose”. Co-author of the report, Professor Maike Halterbreck, said that the report proved that an “in depth review “of the current system was needed, “as soon as possible”.