Majority of UK students to continue repaying study loans into their 50s: study

The vast majority of UK students would still be paying back university tuition fee loans even in their early 50s, and most people would never repay all their debt, a new research has revealed.

According to a study published today, almost three-quarters of graduates would have at least some of their loan written off under a new fee regime introduced in 2012, with the average amount being written off being around £30,000.

According to the Sutton Trust, which commissioned the research, the findings showed that the new fee system could leave professionals such as teachers in a position where they would need to find cash to cover loan repayments at a time when their family and living costs, such as mortgage payments, were at a peak.

Tuition fees increased to a maximum of £9,000 a year in 2012, almost treble the previous fee which stood at around £3,000 after major reforms of university finances.

Eight out of the 10 universities in Yorkshire now charged the maximum fees with only Huddersfield and Leeds Trinity charging less.

According to the study 73 per cent of graduates would take such a long time to repay their debt that they would qualify for having their loan written off after 30 years – when most would be at least 51.

The study said the students would effectively pay an extra 'tax' via payroll deductions for 30 years.

The study has led to calls for an overhaul of the system and ministers were already under pressure amid evidence the regime would not be able to deliver the expected savings to taxpayers.

Mailonline, quoted Conor Ryan, director of research at the Sutton Trust, as saying a lot had been said about the lower repayments that graduates made in their 20s under the new loan system, but very little about the fact that many graduates would face significant repayments through their 40s, whereas many would previously have repaid their loans by then.

Under the old system, most graduates would pay off all their debt by their late 30s.

According to the research, by the Institute for Fiscal Studies, typically students would graduate with debts of £44,035 under the new system, as against £24,754 under the old regime.