Official figures have found that around 400,000 students have not yet made loan repayments as their salary falls below the £15,000 per annum threshold.
New students have also been warned that due to the rising rate of inflation, cheap loans may become a thing of the past, The Guardian reported.
Out of 1,237,300 students who still owed money on loans since 1998 a total of 384,300 had not yet made repayments.
'As the financial crisis deepens, the burden on new graduates is going to be even greater', said Stephen Williams, the Liberal Democrat spokesperson for universities.
The Learning and Skills Council admitted recently that the backlog of allowance claims from underprivileged students is so great that the deadline for claim submissions has been extended.
Source :http://www.get.hobsons.co.uk/news/money/829