Experts say that future graduates need a salary of £30 thousand to benefit from a reduction in interest on the loan for education. Representatives of both the Conservative and Labor parties are arguing about how to normalize the higher education system in the UK, as the latest study showed that the average rental expenses for student are £566 per month, leaving them only £36 - that is, a little more than £1 per day - for all other expenses. The information received from Office for National Statistics revealed that in 2017, Britons spent less than a third of their income on renting housing, but for students, rental "eats" 95% of their income, in addition to additional £509 as a security deposit and a mortgage for housing. For comparison, study conducted by National Student Accommodation Surveу showed that students who prefer to stay at home with their parents give their parents only £167 per month. It is probably no surprise that students in London pay the highest rental rate - about £222 per week, although in other regions the situation is not much better.
Given that half of British students with difficulty pay their rent, 45% admit that financial pressure affects their mental health. One in three believes that this interferes with his studies. "Rent takes a huge portion of my income", - says Marianne, a third-year student at Swansea Universitу. "This means that I constantly try to make ends meet, week after week, and cannot think about anything else", - she adds. "I have to take extra hours at work, work more and more... I do not spend too much, I just try to pay my rent and bills on a regular basis", - says Charlie, a second year student at Napier Universitу.
In an attempt to ease the lives of students, many government members call for the cancellation of interest on student loans and reduce the amount of payments. But financial experts warn that these measures will not bring any practical benefit. Sarah Coles, a financial analyst from Hargreaves Lansdown, explains: "To lower interest or commission is like offering a beer to a student and bring it in a colander. That is, it sounds good in theory, but in practice it will be a lost opportunity. Since most modern graduates will never pay their loan in full, a reduction in interest simply means that the amount of money that will be canceled after 30 years will be reduced. Only students who will receive high wages can benefit from this idea".