Figure 10 shows the forecast outstanding balance of student loans projected over the next 50 years

Posted by on April 4, 2022 · Leave a Comment 

These projections depend on the underlying assumptions used in their forecasting and are inherently uncertain due to uncertainties associated with these assumptions and approximations. These projections are intended to give an indication of how the outstanding balance of student loans could grow if current policies and trends continue. This long-term projection is derived by extending the following assumptions from the short-term model (which provides forecasts up until 2025-26) over the next 50 years:

  • Average student loan outlay per borrower increases each year in line with forecasts for RPIX from the Office for Budget Responsibility’s (OBR) Economic and fiscal outlook.
  • Loan borrower entrant numbers vary in line with the Office for National Statistics (ONS) 2016-based principal population projections, weighted to the age profile of new entrants for each loan product. Read more

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