Student loan debt has a significant impact on the ability of young people to save for a home deposit. According to a recent study by Barclays, individuals with outstanding student loans are saving £1,964.40 less per year than those without a loan. This is because students with debt report putting away £310 per month towards a deposit, whereas those without a loan say they save £473.70 per month.
The study also found that 44% of student loan holders claim that repayments limit their ability to build long-term financial stability, while 41% say it prevents them from entering the housing market. This is a major concern, especially in areas where housing costs are high.
The impact of student loan debt on young people's ability to save for a home deposit is a pressing issue in Nigeria, where many students are struggling to repay their loans. The £2,000 per year savings gap between students with and without debt is a significant concern, and highlights the need for policymakers to address the issue of student loan debt.
