Finance - Graduates may pay higher interest rates

Graduates need to pay larger interest rates on their students loans to help avoid financial crisis, a report says.

Commissioned by the Russell Group the report shows that several top universities face a £1,1 billion black-hole in their finances. That deficit is set to occur in the next 2 years.



Second year Canterbury Christchurch student Ben Jones Studying English thinks this is unfair. Ben said,"It doesn't seem right universities can start changing financial terms when many of us have worked to a set plan."

This report will concern many students.

The Russell Group represents the 20 most research-intensive universities in the UK. It will make recommendations to the government later this year.


The group have also suggested lowering the threshold amount that students can start paying back loans. It currently stands at earnings above £15,000.