Students Unable To Pay Loans

Ministers revealed today that a third of University graduates are unable to re-pay their student loans, since their introduction in 1998.

Re-payment of the loan starts when a graduate earns over £15,000 a year, which means one third of them are not meeting these financial requirements. The main reason being that it is now even harder to get careers in their field of study due to the credit crunch and a cut down on recruitment.

Winchester University employ their own Student Services team to help third years in their search for suitable careers after leaving. Liz Bregazzi, Head of Careers at the University, said “What I would like to see is students thinking sooner about possible careers. They will find it harder this year especially due to the credit crunch.”

She also revealed that the University is rated 7th out of 10, for the fewest numbers of graduate work after 6 months. However, concluded with “51% of our students do however have graduate careers when they leave.”

“Salaries have been increasing (too) fast and the slowdown is inevitable” – states the Prospects website ‘Graduate Employment and Salaries review’. This was based on the 2007 graduates, and predicts the 2008 outlook.

Natasha Issa, former senior student and graduate from the University said “I am earning under £15,000 a year. Jobs have become harder to enter and I’ve had to go back to college to improve my Maths results.”

49% of the Students who graduate are still working their way up to higher jobs, and with inflation rates increasing, paying off loans may become an even harder task in the near future. Official figures released to the Liberal Democrats also state that some of these students are not earning over £15,000 annually after 7 years of graduating.


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