Latest news : Student debt to reach £25,000

There is some more bad news for students starting university this autumn as a poll reveals that they will graduate with £25,000 debt.

Push.co.uk the UK’s largest survey of student finance revealed that students who started at university last year can expect to owe over £23,200 by the time they leave and new students should reckon on around £1,500 more than that.

The annual survey by Push, the UK’s leading independent resource for prospective students, has found that student debt now tops £5,600 for each year of study. The inflation-busting increase of 5.4% may in part be down to availability of part-time and temporary jobs during the recession.

The Push Student Debt Survey involves face-to-face interviews with over 2,000 students at 139 university campuses throughout the UK.

Prospective students receiving their A level results will be particularly concerned as proposals being considered by the Government and by Lord Browne’s review into student finance may impose higher fees over the next few years.

The different funding arrangements around the UK are also reflected in the data. In Scotland, which has the most generous funding system, debts are less than half those south of the border. Meanwhile, with an average of £6,411 per year, students have faced the harshest increases in Wales, where opportunities for paid work appear to have dried up.

There is considerable variation between individual universities too. The national average projected debt on graduation for anyone in higher education right now stands at £16,614, but at nine universities, the figure has already broken the £30,000 barrier. However, at 20 universities, most of which are in Scotland, borrowing is likely to remain under £10,000.

‘We are at a crunch point for student debt. Many talented potential students may shy away when they hear a degree will cost £25,000. As the Government and Lord Browne consider what to do about the future of student finance, these figures should give them a lot to chew on,’ said Johnny Rich, Editor of Push.co.uk

He added, ‘meanwhile, for students, it’s never been more important to understand the differences between universities. It’s not just the debts that vary widely – the whole experience students have at different institutions varies too and what they stand to gain from each uni too.’

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