Students could end up paying over £100,000 for their degree by the time they clear their debt.
New analysis has revealed that interest rates of up to 4.6 per cent on student loans could more than double the estimated £44,035 of debt that students are saddled with.
Despite being pinned to the retail prices index (RPI), that percentage is still significantly higher than most other types of finance such as mortgages.
Anthony Seldon, vice-chancellor of Buckingham University, told the Sunday Times: “There is a real risk it will very soon not be seen as financially worthwhile to go to university.”
A study conducted in March found Brits are spending billions of pounds on university degrees they’ve never used following graduation.
Some 64 per cent of respondents said their degree was not relevant to their current role, which works out at an estimated £65 billion squandered on degrees that are never used.
Barinder Hothi, Co-founder of The Knowledge Academy – one of the biggest training companies in the world – which commissioned the study, said: “It’s shocking to see such statistics – the high cost of university is often considered necessary in order to progress in a particular career.
“But with most valuing the experience of university (such as making friends, managing a budget, etc) over the knowledge gained from their degree, one has to ask, is it really worth it?”
