Graduates could face debt for 30 years

According to a `Money Mail` investigation, graduates on modest incomes could be repaying their student debts for 30 years, the Daily Mail reports.

Facing an `effective tax rate of 45%`, many graduates would be left repaying their debts into their mid-50s - by which time, as the article suggests, they may be thinking about sending their own children to university.

University tuition fees are set to reach as much as £9,000 a year, while - according to the NatWest Student Living Survey - living costs could hit £8,210 a year. This equates to £17,210 a year (or £51,630 over three years).

The maximum loan obtainable from the Government is likely to be £43,500.

Debts to the Government will be repaid though salary contributions (9% of any salary above £21,000). Interest on the debt will range from the RPI (retail prices index) to RPI plus 3 percentage points - with those earning more paying the most.

"As always," a spokesperson at Think Money said, "we would advise anyone concerned about their debt to speak to a professional debt adviser without delay."

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Tags: debt, student, graduate, graduate debt, Money Mail, NatWest, government, government debt

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