Budget 2021: spending on student loans to hit £13bn by 2026

Watchdog forecasts rise in public spending on student loans, as government considers lifetime loan guarantee

Public spending on student loans is expected to reach £13 billion by 2025-26, according to the Office for Budget Responsibility.

In its annual economic and fiscal outlook for the UK, published alongside the budget on 3 March, the OBR revealed that spending on student loans in set to rise from £10.2 billion in the 2019-20 financial year to £13 billion in 2025-26. Public spending on student loans is calculated using the portion of student debt that is expected to be written off and picked up by the taxpayer.