University students starting their degree courses this autumn could be developing debt problems for years to come, as they are expected to graduate owing around £23,000 a survey predicts.
The study of 2,024 students by The Push Student Debt Survey, questioned academics at varying stages of their degree courses and discovered that debt levels averaged more than £5,000 a year.
Worryingly debt levels in England have increased by 10% in the last twelve months, suggesting that the debt problems of students are getting worse.
A separate study by the National Union of Students (NUS) suggests that the fees for some degrees are masked by “hidden costs”, which makes some courses unknowingly more expensive than others.
Maths and computer science students spent the most in additional hidden costs Рan average of ¬£1,430.40 per year on books and equipment.
The survey also suggests the amount of debt students incur varies widely between regions and institutions, with students in England having the highest levels of debt Рan average of ¬£5,271 for each year of study. Worst hit are students in London, where some say they will owe over ¬£30,000 by the time they graduate.
For many students, overdrafts, loans and credit card debts are used to maintain their living costs throughout university.
Johnny Rich, editor of Push, said the recession isn’t helping to stop the rise of student debt.
“Finding part-time work has got harder and many students are facing real financial hardship and are worrying about what lies ahead.
“These figures will give next year’s review of student funding a real headache.
“They beg the question of whether we’ve now passed the point where students can be expected to stump up any more towards their education.”
Wes Streeting, NUS president claims that universities needed to “be more open” with regards the financial implications that being a student entails.
He said: “There should be better information, advice and guidance about student finance on university websites and in their prospectuses”.
Ivan Cooper, Chairman at debt management specialists Chiltern said: “More needs to be done to provide students with sound debt advice and support before, during and after university.
“With the current economy making the jobs market seem less stable, many graduates may not get the jobs that they were hoping for and may be left riddled with debt for years to come.”