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Graduate debts 'unaffordable'
Thursday, 23 July 2009
Life after graduation
It has been revealed that almost a half of all university leavers are struggling to pay back their graduate debts.
New figures from the Student Loans Company, which issues money to help fund students through their university careers, showed that the credit crunch has meant that 702,000 young people are not earning enough to start repaying their graduate debts.
This figure is a 160,000 increase year-on-year, however government ministers have reaffirmed that graduate debt is not as bad as typical commercial arrears due to the "low repayment rates".
A spokesman for the Department for Business, Innovation and Skills, said: "A degree is a strong investment which stands graduates in good stead for a long and successful career, giving them better prospects than those with lower qualifications."
The Student Loans Company recently confirmed that interest on student loans is to be cut to zero per cent in September, which will save university leavers an average of £220, according to the Scotsman.