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Student loans heading to a US style of payment

By Sarah Engle, Fri 14 Oct 2011 - Published in Loans

Many students will not pay back the full amount of their loans, according to Push.co.uk.

The website stated that the UK is heading to a US model of payment, which means that poorer students get a fair amount of help in terms of scholarships from universities.

It added that if parents cannot afford to pay £9,000 tuition fees for their children, then the kids borrow the money and pay it back at a low rate of interest over 30 years.

Johnny Rich, editor of the website, said: "If they haven't finished paying it back over that 30 years, the rest is written off.

"In most cases, students will not pay off all of the debt; most students will pay off only a fraction of what they owe, because the rest will be written off by the government."

Recent research by Family Investments revealed that the cost of living for UK students has increased by over a third since 2004.