Student debt creates ‘mid-life tax crises’

Many graduates will face tax rates effectively above 50 per cent, according to a report.

Mid-earners in their 30s and 40s who are repaying student loans will be hit with a “mid-life tax crisis”, according to a report by London Economics published on 20 July.

The report, commissioned by the University and College Union, found that middle-life mid-earners would lose more than half their earnings through deductions for tax, national insurance and student loan repayments.