Market Trends of UK Student Loan Industry
High Tuition Fees is Driving the Market
- The United Kingdom is the ultimate study destination for many international students because of the academic excellence and student life it offers. Studying in the UK can be an expensive affair, which is why it regularly features in the list of the top 5 most expensive study abroad destinations. However, if you look at the brighter side, the duration of the majority of courses in the UK is very short, which reduces the overall cost.
- The approximate cost of studying at UK private and public universities varies between GBP 4,180 to GBP 29,259 (USD 5705 to USD 40045) annually. Besides, as an international student, one has to incur several fees while studying in the country. Therefore, it becomes crucial to smartly plan expenditures. The cost of studying in the UK is divided into three parts, i.e., cost of education, living expenses, and other essential expenses.
- The international students in the UK for medical degrees and MBAs are higher compared to tuition fees for humanities and social science degrees. Living expenses are another important part of the total cost of studying in the UK from India or other international cities. They include paying for accommodation, food, transportation, household bills, shopping, other leisure activities, etc. The average monthly cost of living in the UK is around GBP 1100 - GBP 1300 (USD 1507 - USD 1781).
Understand The Key Trends Shaping This Market
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England has the Highest Number of Student Loans Debts
- Loans to students in England are far higher than those in other countries in the UK. Students in Scotland, where tuition is free for residents, have GBP 15,400 (USD 21098) in outstanding loans on average. In contrast, students from Wales owe GBP 35,500 (USD 48395), and those from Northern Ireland owe GBP 24,500 (USD 33545) after graduation. The outstanding student loans in England have surpassed GBP 200 billion (USD 274 billion) for the first time in 20 years, earlier than previous government forecasts, as the number of students at universities continues to outstrip expectations.
- The Student Loans Company (SLC) revealed that the average amount owed by graduating students had risen again and now sits at just under GBP 45,000. England's undergraduate population has swelled more rapidly than expected, while postgraduate students have also been able to take out loans. Currently, GBP 20 billion (USD 27.40 billion) a year is loaned to around 1.5 million students in England each year. The value of outstanding loans at the end of March 2023 reached GBP 206 billion (USD 282 billion). The Government forecasts the value of outstanding loans to be around GBP 460 billion (USD 629 billion) (202122 prices) by the mid-2040s.
