Three-quarters of UK graduates ‘will never repay student loans’

One key finding is that because interest rates on student debt are very high — up to 3 per cent above RPI — the average student accrues £5,800 of interest while studying, meaning they borrow £45,000 but have a debt of £50,800 on the day of graduation. By contrast, the average debt burden on students in the US is far lower at $36,000 (£27,900), even though the cost of tuition varies far more at US institutions. The research comes at a time of heightened debate around student funding. Labour leader Jeremy Corbyn won support from a swath of young voters on the back of his election promise to abolish £9,250 annual tuition fees altogether.

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