- 04
- Sep
The average debts of university graduates in the UK are now estimated at between thirteen thousand and fifteen thousand pounds. These debts are made up predominantly of student loans, bank overdrafts and credit card debt. Many students are also taking out personal loans and most borrow heavily from their parents. The debt figures for students are increasing by twelve per cent per year and this figure is set to grow dramatically as next year is the first year that universities have been allowed to charge maximum fees of up to three thousand pounds per year. This is up from the previous figure of one thousand two hundred and fifty pounds per year.
The Student Loans Company has reported that total lending for this year stands at 3.4 billion pounds, which is half a billion pounds higher than for the same period in the previous year. These debts are seen as spiralling out of control and many fear that graduates will not be able to purchase homes, make investments and save for their futures as a result of the high levels of debt that they are leaving university with.
Many are calling for more debt counselling and financial planning training to be given to young people so that they can understand better the deals that they are getting involved in and the credit agreements that they are signing with banks. Others claim that many students stand little chance of clearing their debt within the first couple of years of graduating unless more training and advice is given to them on how such debts operate.
