This news comes at a time when there is already worry that graduates will find it difficult to get a job due to the credit crunch. Figures revealed that there are nearly 400,000 people who have been unable to start paying off their student loan, with some people not making a single payment in seven years after finishing at university.
The Liberal Democrat spokesman for universities has spoken out saying that graduates are going to find it more and more difficult to get jobs and start paying back their loans as the financial crisis worsens.
Official figures from the Liberal Democrats show that out of 1,237,300 students who had taken out loans, 384,300 had not started to pay them back yet.
Due to figures such as these, some ministers are concerned that the student loans system isn’t working as it has taken too long for them to see any financial return on the £20,000 debt that is usually amassed by students.
Others to have expressed fear at the current financial climate are the National Union of Students (NUS). They have said that there is no such thing as cheap loans anymore as the current rate of interest stands at 4.8 per cent.
It is not only students however who are struggling to make repayments on their loans. Many people are finding it difficult to pay back their personal loans and as a result of this more and more people are taking out payday loans to tide them over until they receive their pay-cheque.
The Liberal Democrat spokesman for universities has spoken out saying that graduates are going to find it more and more difficult to get jobs and start paying back their loans as the financial crisis worsens.
It is not only students however who are struggling to make repayments on their loans. Many people are finding it difficult to pay back their personal loans and as a result of this more and more people are taking out payday loans to tide them over until they receive their pay-cheque.