By Anika Bourley Parliamentary Correspondent

Last updated at 14:03, Monday, 15 September 2008

Cumbrian students have run up a staggering £80m of debt, latest figures have revealed.

And the total is only the amount owed in student loans and does not include any other debts including credit cards they might have.

According to official figures from the Department of Innovation, Universities and Skills the £80m is owed by 9,000 students, an average of £8,800 each, who have now left higher education.

The students started university after 1998 and registered their permanent address as Cumbria – not those from elsewhere who studied in the county.

Across England £8.6bn is outstanding in income-contingent loans, which is the new system which came into force in 1998.

Opposition MPs have called on the Government to address the issue of student debt fearing spiralling costs make it harder to get onto the already difficult housing ladder.

Liberal Democrat Shadow Innovation, Universities and Skills Secretary, Stephen Williams said: “Today’s students are facing unprecedented levels of debt. These figures don’t take into account the commercial debt many students build up in addition to their government loans. This will have a dramatic long-term effect on their ability to buy homes, start families and save for old age.

“Ministers must consider easing the burden on students, and re-consider how much they should be earning before having to repay their loans.”

But Bill Rammell, Minister of State for Higher Education said: “I want people to aim for university confident that they’ll have the help they need to fund their studies.

“This autumn more students than ever before, indeed, two thirds of eligible new undergraduates, will be entitled to a non repayable maintenance grant of up to £2,835 a year. Together with loans available for tuition fees and living costs and bursaries that universities offer, this improved package of support means nobody should be put off considering higher education for financial reasons.

“A university degree remains a good investment.”

The maximum amount a student could apply for last year was £4,625 for students living away from home (£6,475 in London) and £3,580 for those living at home.

From 2005 people started repaying everything once their postgraduate income passed £15,000. Any debts still outstanding after 25 years - from loans or fees - will be written off. Ministers believe most people will clear their debts after 13 years.

The figures come as research by Savebuckets.com revealed nearly one third of parents expect to spend more than their monthly disposable income kiting out their child’s university room as fresher’s week approaches.

First published at 11:44, Monday, 15 September 2008
Published by http://www.newsandstar.co.uk