Graduates face increased debt

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

Comments

  1. I’m not entirely sure whether I’d have bothered with university, if I’d have come out with almost £30,000 worth of debt. Hiking the fees now, when there’s such a tough graduate jobs market just seems like kicking students in the gut while they’re down. I’m not saying that universities should guarantee you a job after graduation, of course they shouldn’t be expected to do that. The graduate jobs market has been tough for quite some time but it’s something that graduates just have to face head-on. But having such a huge debt is going to make that so much harder.

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