If you’re a student there may be relatively good news in sight - however if after your studies you get a job, then the news may not be quite so sunny.
It turns out that the Government is losing 45p out of every £1 it lends to students.
Students don’t have to pay back until they are earning £21,000 and if they haven’t pad it all back after 30 years then the debt is cleared.
Experts have predicted that if student numbers continue as they are at the moment then in a few years the debt mountain will be £330bn.
That’s one big student loan.
Apparently when fees were increased to £9,000 a year it was forecast that 28p in every pound would be lost but now it’s forecast to be nearer half.
Is the sensible thing not to just cut the fees in half - we may lose in the short term but it appears in the long term we’d break even.
