Oldham students run up £34m debt

FORMER students from Oldham owe a combined total of £34million in debts, worrying figures have revealed.

And the figure is only the amount owed in student loans — it does not include any other debts such as credit cards they may also have.

According to the Department of Innovation, Universities and Skills, £34million is owed between 4,000 students — an average of £8,500 each — who have now left higher education.

The students started university after 1998 and registered their permanent address as Oldham. Across England, £8.6billion is outstanding in income-contingent loans — the new system which came into force in 1998.

Opposition MPs have called on the Government to address the issue of student debt fearing spiralling costs make it harder to get on to the already difficult housing ladder.

Liberal Democrat shadow innovation, universities and skills secretary, Stephen Williams, said: “Ministers must consider easing the burden on students while they are studying, and reconsider how much students should be earning before having to repay their loans.”

The maximum amount a student could apply for last year was £4,625 for students living away from home (£6,475 in London) and £3,580 for those living at home.

From 2005, post-graduates started repaying everything once their income passed £15,000. Any debts still outstanding after 25 years — from loans or fees — will be written off. Ministers believe most will clear their debts after 13 years.