English university graduates have a higher liklihood of debt than other countries, report shows

Graduates from English universities have a higher likelihood of indebtedness than those from other countries, according to a report by the Organisation for Economic Co-operation and Development (OECD).

The ‘Education at a Glance’ report for 2019 outlines that 94% of students graduating from universities in England are leaving with debt, with the average amount totalling to £40,452.

Out of the 11 countries that the OECD found levels of student debt for, the UK had the highest and almost twice as much as the next highest country, Norway, where students have an average debt of £23,247 per student.

“It is expected that as much as 45% of the financial value of student loans will not be repaid,” the report states.

Tuitions fees in England are also higher than in all OECD countries and economies apart from in the US.

General Secretary of the University and College Union (UCU) Jo Grady stated: “Students are leaving university with world-record levels of debts, yet their universities are not investing in staff.

“Students have made it clear that they want to see more money prioritised for teaching and, as a minimum, we should be matching the level of investment made by other countries.’

64% of universities spend their income on staff, less than the averages of the OECD and the EU with those being 69% and 70% respectively.

Out of the 32 countries the OECD found data for, seven spent a lower percentage of their income on staff than UK.

Students are leaving university with world-record levels of debts, yet their universities are not investing in staff

– Jo Grady

The publication the OECD’s data on university staff pay comes after ballots opened on 9 September in 69 universities for strike action changes in the Universities Superannuation Scheme – a Pension scheme in the UK for academic and academic-related staff – and 147 institutions over pay, workloads, equality, and casualisation.

The overall outcome of the ballots will reflect the satisfaction of staff and if strike action is called. Jo Grady said: “Universities have to recognise that staff are their most important asset and invest in them properly. That starts with a fair offer on pay and conditions.”

The report also outlined that the United Kingdom enrols the second largest number of international students in the OECD area after the US and accounts for 10% of the total international education market share in OECD and partner countries.

Furthermore, 23% of 25-64 year-olds have a bachelor’s degree, which is 5 percentage points above the OECD average.

“In spite of high tuition fees and lower than average earning premiums for tertiary graduates,” the report also states, “the gains (over a lifetime) associated with a higher level of education still greatly exceed the cost of tertiary studies in the United Kingdom.”

Although, the private net financial returns for graduates in the UK are lower than in most countries, the report outlines.