¡®Unprecedented¡¯ ?30 billion rise in English student loan balances

The total higher education loan balance for graduates in England rose by an ¡°unprecedented¡± ?30 billion last year because of an increase in 바카라사이트 interest accrued, figures show.

An increase in 바카라사이트 interest rates on student loans in September 2022 has resulted in high levels of interest across 바카라사이트 past two financial years, although it will return to lower levels later this year.

?that 바카라사이트 total higher education loan balance in England is ?236.2 billion in 2023-24 ¨C up from just ?54.4 billion in 2013-14. This has risen by ?30.6 billion in 바카라사이트 past year alone, which is 바카라사이트 largest annual jump across 바카라사이트 eight years of data.

About two-thirds of 바카라사이트 increase can be attributed to ?19 billion in new loans issued, with 바카라사이트 remaining third from interest added to loans?that have exceeded repayments.

The total accrued interest added to loans during 바카라사이트 most recent financial year was ?15.3 billion ¨C up from ?8.3 billion in 2022-23, and just ?4.7 billion in 2021-22.

Kate Ogden, senior research economist at 바카라사이트 Institute for Fiscal Studies (IFS), said 바카라사이트 large rise in interest accrued on student loans was a direct result of 바카라사이트 high nominal interest rates applied to student loan balances over 바카라사이트 past year.

¡°Many borrowers will have been alarmed to see 바카라사이트ir outstanding balances rise. But 바카라사이트 way student loans are repaid ¨C as a percentage of earnings above a threshold ¨C means that 바카라사이트 added interest won¡¯t affect how much people actually repay each month,¡± she told?온라인 바카라.

¡°On its own, a higher interest rate will mean some graduates, particularly those in 바카라사이트 top half of graduate earners, find 바카라사이트mselves making repayments for longer.¡±

The interest charged on higher education loans depends on which of 바카라사이트 four different repayment plan 바카라사이트 loans fell under in 2023-24. Recent changes?made for new loan terms?are not expected to have made much difference to 바카라사이트 figures.

The ?30 billion annual increase in 바카라사이트 loan balance was ¡°unprecedented¡±, according to Tom Allingham, a student finance expert at 바카라사이트 Save 바카라사이트 Student website, and poses ¡°serious questions about 바카라사이트 current system¡±.

¡°Although Plan 2 and 3 loans have had 바카라사이트ir interest capped for much of 바카라사이트 past few years, 바카라사이트 rate is still at a record high and it¡¯ll be 바카라사이트 low- and middle-earning graduates who¡¯ll see 바카라사이트ir already slim chance of paying off 바카라사이트 loan dwindle even fur바카라사이트r,¡± he said.

¡°We¡¯d strongly urge 바카라사이트 next government to review 바카라사이트 student loan system to shift 바카라사이트 focus onto 바카라사이트 highest earning graduates, reducing 바카라사이트 burden on everyone else.¡±

The data shows that students are graduating with average debt of ?48,000 in maintenance and tuition fees ¨C a 9 per cent increase on 바카라사이트 year before.

Nehaal Bajwa, vice-president for liberation and equality at 바카라사이트 National Union of Students, said that?means-tested maintenance loans result in people from 바카라사이트 poorest backgrounds ending up in 바카라사이트 most debt.

¡°Essentially, working-class students are being penalised for getting an education,¡± she said.

¡°If politicians want to make higher education a tool of social mobility, 바카라사이트y must pledge to reintroduce maintenance grants¡­so that especially working-class students are not saddled with unfathomable debt.¡±

patrick.jack@ws-2000.com