Students 'are underestimating university debts'
Published On 27 July 2007
Both parents and teenagers could be drastically underestimating how much debt they will have amassed after a university degree, a new report suggests.The Association of Investment Companies (AIC) has calculated that the average student now graduates with around £13,000 worth of debt.
However, before attending university, teenagers typically believe they will finish their course with just £8,000 of debt.
Parents guess that their child's debt will not have exceeded £10,000 - meaning that students could be left facing a debt crisis on graduation.
To cover university expenses, more than a quarter of students (27 per cent) are forced to take on an additional loan.
"Whilst it's important to remember the many positives of a university education, it is a concern that so many parents and students still underestimate the true level of graduate debt," explained Daniel Godfrey, director general of the AIC.
"Unless parents and students start to really comprehend the financial implications of going to university, the shortfalls faced by tomorrow's students could put them in serious financial difficulties right at the start of their working lives."
Recently, Scottish Widows reported that graduates were finding it increasingly hard to afford a mortgage and get on the property ladder.
