Students and parents worry about university debt

Parents and their children are concerned about the debt they will accrue while studying at university, a new study has shown.

Research from Association of Investment Companies (AIC) indicated that over three quarters (78 per cent) of parents think that the credit crunch will make it harder for them to help their children fund their studies.

As a result, there is a chance that students will end up graduating with significant levels of debt. Indeed, the research suggested that the typical student in the future will graduate with £20,000 of debt.

While students are underestimating how much debt they will rack up studying, they still think the money will have a significant impact on their lives. Nearly half (40 per cent) said they would be looking for a well-paid job, rather than their dream career, to help them pay back the debt.

Nearly a quarter (23 per cent) said they thought they would be shouldered with their student debt for at least 15 years after graduation.

"The credit crunch and the rising cost of living will undoubtedly make it harder for parents to fund their children''s university years," commented Annabel Brodie-Smith, the communications director at the AIC.

"Whilst there are many benefits that come with a university education, on graduation many young people find themselves struggling to repay their debt."