Student debt hits home deposit savings by £2,000 a year, says Barclays
Maya Brooks
Barclays reports that student loan repayments are costing graduates nearly £2,000 less per year in home deposit savings, impacting long-term financial stability for many.
- £2,000 less per year in home deposit savings for students with loans compared to those without
- 44% of student loan holders claim repayments limit their ability to build financial stability
- 41% say it prevents them from entering the housing market
A new report by Barclays has found that people with student loans who are working towards a home deposit save almost £2,000 less per year than those without the debt.
The bank's research also discovered that nearly half (44%) of student loan holders claim that repayments limit their ability to build long-term financial stability, while 41% say it prevents them from entering the housing market.
For many graduates, this can have a significant impact on their future plans and aspirations, particularly in relation to home ownership. The research highlights the need for increased support for those struggling with student debt.
The UK government has introduced various schemes to help students manage their debt, including income-contingent repayment plans and tax-free allowances for certain types of income.
Why this matters: This report highlights the ongoing challenge faced by many graduates in managing their student debt, which can have a lasting impact on their financial stability and future prospects.
What this means for you: This story may affect household budgets, bills, savings, benefits or financial planning depending on your circumstances. Check whether the change applies to you before making financial decisions.