Lenders Risk Pain From UK Universities’ £9.5 Billion Debt Burden

Swansea University’s Bay Campus on the outskirts of the Welsh city was expected to attract a wave of new fee-paying students to boost revenue after the government squeezed funding to the sector. These days, it’s more of a millstone after overseas enrollments failed to grow as much as expected, a symbol of the wider financial problems facing universities across the UK.

“Successive governments and successive ministers have always said there is no guarantee behind a university,” former universities minister and think tank Resolution Foundation President David Willetts said in an interview. “You cannot assume that if you’re making a commercial loan to a university, that is automatically guaranteed.”

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