TOTAL student loan debt in Scotland has more than doubled since 2011 to £5.5 billion in the last academic year, a rise of 120%, the public spending watchdog has revealed.
Auditor General for Scotland Caroline Gardner’s paper also showed that more than £533 million worth of loans were authorised in 2018-19, an increase of 185% in a decade, with poorer students borrowing more. And, as of last April, 505,800 individuals still had loan debt to repay.
Liam McCabe, president of the National Union of Students (NUS) Scotland, said the report made stark reading for students.
The document reported that the most recent statistics from the Student Loan Company (SLC) indicated that, since 2000, more than 654,000 people had been given a loan and by last April, 140,700 had fully repaid them, but last year £7m worth of loans were written off.
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A total of 421,500 borrowers were liable for repayment and 84,300 others were not yet liable.
In 2008-09, the average loan per student was £2420, which rose to £5300 in the last academic year, with the biggest increases occurring between 2012-13 and 2013-14, when the average loan went from £3110 to £5020.
Increases in the average loan amount over the last three years have been negligible, said the paper. It said the figures raised a series of questions about the scheme costs, such as its financial sustainability and the implications for Scottish Government spending.
The briefing also asked how clearer information on the personal cost of the loans, level of debt and potential repayment period influenced people’s decisions to undertake higher education.
Gardner said: “Student loans are only one part of the package of student support but they represent a significant investment by the Scottish Government.
“These loans need to be repaid in full by either the students or the state, so it’s important that the figures are clearly reported to ensure the costs are sustainable and the impact on individual students is understood.”
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McCabe said: “It is Scotland’s poorest students that are carrying most of this burden, at an unacceptable average of £23,200 in student loans.
“Whilst free tuition helps mitigate Scottish student debt levels – a policy that NUS Scotland will always protect and defend – this cannot be used as an excuse for continued levels of increased student debt.
“Whilst investment in non-repayable bursaries for students most in need has increased, including the continued uptake of the care-experienced bursary, the Scottish Government must recognise this clearly does not go far enough and provide more financial support to Scotland’s students.
“They must deliver on the recommendations of the Student Support Review – now three years on – to improve student support and realise our shared ambition of a Real Living Wage for all of Scotland’s students, helping alleviate poverty, deprivation and debt for students across the country.”
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