Student debts to rise if fees double

By Matthew Plant – Financial specialist

A review of the funding of higher education, which started earlier this month, could lead to students paying more than double the present fees for university courses, meaning they will face `bigger debts`, The Times reports.

The review will last up to a year, and will `look at levels of student debt and weigh these against how students themselves value higher education and the rate of return from gaining a degree`.

The cost to graduates of repaying their student loans is also expected to increase as the current subsidised rate proves `unsustainable`.

Meanwhile, some chancellors are calling for university tuition fees to rise from the current level of £3,225 to £7,000 per year - which will inevitably lead to higher levels of student debt.

A debt expert for Think Money commented: "If university fees do increase by as much as it is claimed they could, we will undoubtedly see more students struggling with large debts.

"We would advise all borrowers - not just students or graduates - who are worried about their debts to speak to a professional debt adviser without delay."

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