Revealed: Thousands of over-60s taking out thousands and thousands in scholar loans as consultants worry they’re unlikely to pay again a penny

You’re never too old to try something new, so the saying goes.

And thousands of over-60s are proving this to be true – by taking out millions in student loans experts fear will never be repaid.

A higher education system loophole means they are entitled to taxpayer-funded finance on the same terms as young people.

Some 4,648 have had loans since 2019, freedom of information data obtained by The i reveals.

They have to repay 9 per cent of their income above £25,000 but are unlikely to pay back a penny in many cases because their earnings fall below the threshold. 

And for some elderly people, pension income is not included when repayments are calculated.

Some 75 per cent of mature students who successfully finish their course are yet to make repayments due to low incomes. But for graduates of all ages, the figure is just 20 per cent.

Most universities charge about £9,250-a-year for a full-time undergraduate course lasting three years.

You’re never too old to try something new, so the saying goes. And thousands of over-60s are proving this to be true – by taking out millions in student loans experts fear will never be repaid (file image)

A higher education system loophole means they are entitled to taxpayer-funded finance on the same terms as young people (file image)

If all the over-60s who took a loan since 2019 received that amount, it would equal nearly £130million. But the true total is not known as costs for courses vary according to type.

Student loans are not repayable when someone dies and are wiped, unlike mortgage debt.

Liz Emerson, co-founder of the Intergenerational Foundation, said: ‘Nobody would want to prevent anyone from accessing higher education for the first time, but there is an obvious cost to younger taxpayers if the repayment terms remain the same for all ages.

‘Unlike those taking out loans in their 60s, who are unlikely to repay in full, many taking out loans at 18 face four decades of repayments.’

Student loan repayments are usually taken from graduates’ salaries and typically deducted from income subject to class 1 National Insurance payments. 

Pension income does not fall under this so some older people may have an income above the repayment threshold but won’t have to pay back their loan.

Only those who have never studied for a degree before can take out tuition-fee loans and over-60s are not allowed postgraduate fee loans (file image)

But repayments may follow if a self-assessment tax return is done.

Only those who have never studied for a degree before can take out tuition-fee loans and over-60s are not allowed postgraduate fee loans.

A Department for Education spokesman said: ‘This Government is committed to breaking down barriers to opportunity and boosting economic growth by ensuring we have a workforce with the skills needed for the 21st century.

‘This includes supporting older students who wish to undertake higher education for the first time in order to reskill.’