Gobsmacked to read this morning that the UK now has the most indebted graduates in the world. I was aware of the gulf between us and Europe but had always imagined the US was still streets ahead - apparently not!
« Over 90 per cent of UK graduates take out a loan, accumulating an average debt of around £45,600. 60 per cent of US graduates take out a loan, with an average debt of $28,400. The UK government contributes the least to a student’s education of any OECD country ». (Source:Tortoise Media). Obviously these stats will only get worse with the changes to repayment charges brought in last year.
As with so many things, we’ve been conditioned to think this is normal?
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UK has the most indebted graduates in the world
Sleepy432 · 25/03/2024 09:54
KnittedCardi · 25/03/2024 11:19
But it isn't a loan in the normal sense. Most people never pay them off, and there is no penalty. It's really a graduate tax, regardless of how much you take out, you pay the same monthly percentage.
Ilikefood1234 · 25/03/2024 10:56
In the US defaulting on a student loan ruins your credit score massively. You can't even get student loans discharged if you go bankrupt in the USA.
In the UK if you earn below the limit you don't pay and the debt is written off.
Ponderingwindow · 25/03/2024 11:28
The US system demands huge parental contributions. It’s really not comparable at all. You have to pay up front, even if also taking some loans. Many parents start saving from birth to cover their portion of the costs.
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