The Financial Times reported on the implications of the new Sutton Trust/IFS report on student debt.

Almost three-quarters of students will still be paying back university loans in their early 50s, according to new research that exposes the heavier debt burden imposed by tuition fee reforms.

A report, compiled by the Institute for Fiscal Studies think-tank, says the typical student will leave university with debt worth more than £44,000 – approximately £20,000 more than under the previous fee and loan regime.

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Commenting on the study, Conor Ryan, director of research at the Sutton Trust, said that while a lot had been said about the lower repayments that graduates made in their 20s under the new system, “very little” had been discussed about the payments that ex-students would have to make through their 40s.

“With recent revelations about the proportion of loans unlikely to be repaid, it seems middle-income earners pay back a lot more but the exchequer gains little in return,” said Mr Ryan. “We believe that the government needs to look again at fees, loans and teaching grants to get a fairer balance.’’

Liam Byrne, the shadow universities minister, said that the coalition’s student finance system had lost its “last shred of credibility”.

“Degree costs have trebled, yet costs to the taxpayer have gone up, and now we learn our children and grandchildren will be paying off their student debt well into their fifties,” he said.

Read the full article here(£).