StudentMediaWire

A third of students who started university since fees were introduced in 1998 are earning too little to make repayments on their loans, according to the Liberal Democrats.

Nearly 400,000 graduates have not made repayments on their loans up to seven years after they graduated because they are not yet earning above the £15,000 threshold. It comes amid concerns that graduates now face the toughest time in a generation as firms cut down on recruitment in the credit crunch.

Stephen Williams, Liberal Democrat Shadow Innovation, Universities and Skills Secretary, said: “It is shocking that nearly a third of graduates are not yet earning enough to be repaying their students loans.

“Having forked out for at least three years to get a degree, many new graduates would be expecting to be in well-paid employment.

“Aside from their student loans, many of these young people will have also stacked up large amounts of commercial debt which they will be struggling to repay on their relatively low wages.

“As the financial crisis worsens the burden on new graduates is going to be even greater.”