government statisticsIndeed, the average student’s debt on graduation day in England is thought to be more than £45,000 in both maintenance and tuition loans, which are repaid with additional interest through a 9% cut of earnings and written off after 30 years.
Amber, a 30-year-old business owner from Southampton, graduated in 2013 and says that she still has over £20,000 left of her student loan to pay back. “Before I started my business, I never really thought about student loans. It just came out of my pay cheque every month – and while that was a pain to see, it was never really that much.”
Amber doesn’t hold much hope of ever fully repaying her debt. “I know that realistically I could put more money into the student loan pot and get rid of the debt, but I’d rather put that money towards buying a house, growing my business and living my life. Does this mean I’m unlikely to ever fully pay it off? Probably, but I think I’m okay with that.
However, Katie’s husband will finish paying off his student loan in the next couple of months. “He’s around five years older than me, so his fees were a third of mine, because tuition fees were cheaper back then. But regardless, he’s in a better paying industry than I am, and I also work part time around raising our child,” she says.
Katherine, a fellow English graduate, left university in 2015 and also has yet to repay the majority of her loan. “I’ve possibly paid off £150, if that. Thanks to interest, low salaries and starting my MA this month, I highly doubt I’ll ever repay it in full.”is something that most bemoan but ultimately have to find a way to live with. In its worst manifestation, it is a barrier for low income students continuing with their education.
“Student loans are an abomination,” says Rachida, an entrepreneur who holds a law degree. “I think education should be free, at least for the very poorest in society.
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