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Intelligent Environments highlights major student debt issues

New research from FinTech outfit, Intelligent Environments, reveals the ripple effect a graduate’s student loan debt has on their financial wellbeing later on in life. This found that 41% of 2,000 UK adults who previously had student loan debt said it hindered them in saving for a mortgage deposit. 37% believe that having this debt delayed them from starting to save for a pension, and 26% from making major purchases, such as buying a car. Meanwhile, according to advice portal Save the Student, two in three students don’t understand their loan agreements, including the interest they’ll have to repay.

Intelligent Environments is calling on UK banks to work more closely with the Student Loans Company to provide graduates with the means and advice to save whilst paying their loan. MD David Webber cites data from the Student Loans Company, showing that students in England now leave higher education with an average debt of £26,640, compared to £16,160 just five years ago.

“At the moment the lack of clarity in how much repayments will be from one year to the next, exacerbated by changing interest rates, is making it really tough to save for big purchases such as a car, house or to set aside money for retirement,” he says. “They are asking for their banks to put plans in place to help them pay off their debt effectively. Digital tools specifically present an excellent opportunity for this, helping young adults visualise all their income and debt in one place, enabling them to pay their dues whilst living their lives to the fullest.”

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