London, United Kingdom

Student debt in the US is old news, but did you know that some 1.8 million people in Britain have student debts running into millions of pounds?

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According to data accessed by BBC, nearly 1.8 million people still have more than 50,000 pounds or more per person in student debts. 

Besides this, individual debts of at least 50 people go beyond 200,000 pounds. 

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More than 61,000 people have to pay over 100,000 pounds per person, according to Student Loans Company (SLC), from which BBC accessed the data.

Average tuition fees in the UK are around 9,250 pounds per year.

The loan terms can last up to 30 years, after which they are often written off.

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According to data published by Britain's Department of Education, student loan balance reached 236.2 billion pounds as of 2023-24, including new lending and interest. 

This is a massive rise from a decade ago, when loan balances were 54.4 billion pounds in 2013-14. The figure for 2022-23 was at 205.6 billion, nearly 15 per cent less than the subsequent financial year.

It noted that new lending and interest added to existing balances outweigh repayments and write-offs.

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Nearly 75 per cent of these amounts are liable for repayment as due dates have passed.

The BBC report said loan balances are higher for those doing multiple or lengthy courses.

It quoted Tom Allingham of the website Save The Student as saying that the debts were "alarming."

As the UK goes into elections this week, none of the parties have taken up student debt as an issue, something the National Union of Students (NUS) termed 'ridiculous'.

BBC quoted Ben Waltmann of the Institute of Fiscal Studies as saying that those who took Plan 2 loans, introduced when fees were tripled, are unlikely to pay back fully.

Cost of studying in the UK: Tuition fees

Tuition fees in the UK were raised three-fold a decade ago.

Depending on the nature of institution and course, the undergraduate tuition fee in the UK can range from 10,000 pounds to 25,000 pounds. It is particularly difficult for international students when cost of living is added.

According to the British Council, international undergraduate tuition fees could be up to 38,000 pounds, while that for post-graduation could be up to 30,000 pounds.

Cost of stay, groceries and other bills will add up to 1,400 pounds per month. This includes hostels or private accommodation, gas, electricity, water, internet and TV, public transport and mobile phone among other things.

Rise in cost of living for UK students

In the post-pandemic world, UK students saw a 57 per cent rise in cost of living as of November 2022, according to NUS.

The student union also said that 25 per cent of students reported having less than 50 pounds left from their budget every month after paying bills in this period.

(With inputs from agencies)