As the majority of us are about to finish university, there comes the dreaded thought of what we are going to do next and how are we going to pay back our students loans. Luckily we missed out on the £9000 rise of tuition fees. However, according to a report carried out by the Institute for Fiscal Studies and the Sutton Trust, students could be paying loans into their 50’s and many will never clear the debt. Hence almost three-quarters of graduates from England will have at least some of their loan written off as a result of the average student leaving university with more than £44,000 in debt. The Student Finance regime set up in 2012 will leave students vulnerable at a time when family costs are at a peak.
What does not help is that in today’s economy, the majority of young people that have graduated from university are unemployed even those with a good degree. Young people have unfortunately had a raw deal in the labour market and the economic financial crisis has done nothing but hinder this. Employers are also reluctant to hire young people because they are constrained by inflexible labour markets which carry the legacy of antiquated social welfare system. What does not help is that labour market policies are out of whack with economic realities. Hence, they should generate mobility, agility and transferability; instead the labour market is protecting itself from young people who can create conditions for a new era of stability.
To conclude students who are forced to take out loans in order to complete university are the losers the in global economy as having the opportunity to attend university comes at a high cost. One that is so high some of them will never manage to pay it all back.
Eva Aisha Caley