Number of outstanding student loans shocking - Mulholland

12.00.00pm UTC (GMT +0000) Tue 7th Oct 2008

A third of students who started university since fees were introduced in 1998 are earning too little to make repayments on their loans, research by the Liberal Democrats has uncovered.

Nearly 400,000 graduates have not made repayments on their loans up to seven years after they graduated because they are not yet earning above the £15,000 threshold. It comes amid concerns that graduates now face the toughest time in a generation as firms cut down on recruitment in the credit crunch.

Commenting, Leeds North West MP Greg Mulholland said:

"The number of graduates who are not yet earning enough to be repaying their students loans is deeply concerning.

"Many students expect to find themselves in well-paid employment after graduating, especially after the amount of money they have forked out to pay for their studies.

"It is not just student loans that graduates are struggling to repay as many have other large debts which they cannot afford to pay back due to the relatively low wages they earn.

"It is also worrying that the current financial climate suggests the burden on new graduates could increase further still."

ENDS

Notes to Editors

The figures were uncovered in a Parliamentary Question:

http://www.publications.parliament.uk/pa/cm200708/cmhansrd/cm080910/text/80910w0036.htm#08091018005474 <http://www.publications.parliament.uk/pa/cm200708/cmhansrd/cm080910/text/80910w0036.htm>