Average graduate debts are expected to reach £20,000 next year, yet the recession means that most parents (74%) are finding it harder to fund their children through university, according to a YouGov poll for the Association of Investment Companies (AIC).
AIC figures suggest that a £50 a month investment from birth 18 years ago in an average investment fund would be worth £18,641 today. Without this support, many students expect to be paying off their loans for a decade or more after graduating.
Parents continue to make sacrifices to help their children through university. Nearly a quarter (24%) said that they would sacrifice their annual holiday this year to help with university funding and 19% would delay buying a new car. Some 16% would sacrifice home improvements, 11% would delay moving to a bigger home and 10% would delay early retirement. Over half (55%) of students expect to take out a student loan to help fund their studies.
With A level results published on 20 August and with a cap on university places, competition is fierce to get into university this year. With a squeee on graduate recruitment and faced with debts, 30% of students say they would choose a higher paid job over their career vocation.
AIC press centre