Thousands of people over 60 are taking out student loans, raising concerns that these loans may never be repaid. A loophole in the higher education system allows them to access taxpayer-funded finance on the same terms as younger students, despite their lower incomes and likelihood of repayment.
You're never too old to try something new, so the saying goes. And thousands of over-60s are proving this to be true – by taking out millions in student loans experts fear will never be repaid. A higher education system loophole means they are entitled to taxpayer-funded finance on the same terms as young people. Some 4,648 have had loans since 2019, freedom of information data obtained by The i reveals.
They have to repay 9 per cent of their income above £25,000 but are unlikely to pay back a penny in many cases because their earnings fall below the threshold. And for some elderly people, pension income is not included when repayments are calculated. Some 75 per cent of mature students who successfully finish their course are yet to make repayments due to low incomes. But for graduates of all ages, the figure is just 20 per cent. Most universities charge about £9,250-a-year for a full-time undergraduate course lasting three years. If all the over-60s who took a loan since 2019 received that amount, it would equal nearly £130million. But the true total is not known as costs for courses vary according to type. Student loans are not repayable when someone dies and are wiped, unlike mortgage debt. Liz Emerson, co-founder of the Intergenerational Foundation, said: 'Nobody would want to prevent anyone from accessing higher education for the first time, but there is an obvious cost to younger taxpayers if the repayment terms remain the same for all ages. 'Unlike those taking out loans in their 60s, who are unlikely to repay in full, many taking out loans at 18 face four decades of repayment
STUDENT LOANS OLDER STUDENTS EDUCATION SYSTEM TAXPAYER FUNDING REPAYMENT CONCERNS
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