Student loans are probably the biggest nightmare for most hardworking students. Strict conditions and high interest rates make getting a degree harder than it needs to be. With a majority of U.K. students getting little relief with government funded loans introduced in recent years, the news of their conditions getting stricter is devastating.
The reason behind this expected strictness is twofold. When the current system was established in 2010, the government predicted it would be losing 28-30 percent of the money lent out. However, this rate grew to 35 percent in 2013 and a staggering 45 percent by 2014. So for every $1000 lent, the government is expected to lose $450.
In a recent Higher Education Policy Institute report, the author Andrew McGettigan states, "Uncertainty surrounds the estimations of future graduate repayments, but their estimated value has deteriorated markedly in recent years.”
With the increasing number of students taking out loans together with a tuition fee of a staggering £9000, it is estimated that over the next three decades this debt will increase to £330 billionn.
Although Universities Minister David Willets underplayed the threat of the financial chaos that would result if students were unable to pay a major chunk of their loans, it is now evident that it will crumple the funding universities get.
In response to the speculations and attempts to toughen the student loan conditions, the president of the England National Union of students, Toni Pearce, said in a comment, "Forcing debt on to students as a way of funding universities is an experiment that has failed not just students, but our country."