Member Article

Students 'in debt for decades'

Students believe it could take them decades to pay off their university debts, a survey found this week.

A poll of almost 2,000 current students reveals that the majority are resigned to graduating with thousands of pounds of debt they will be unable to repay quickly.

Almost three in 10 (29.2%) believe they will leave university with debts of more than £20,000, while more than a quarter (26.4%) predict they will graduate with debts of up to £20,000. Around one in six (16.8%) believe they will have debts of up to £15,000.

An optimistic 7.5% think they will leave university without any debt, according to the survey, which was commissioned by insurance company Endsleigh.

The findings show that while 8.1% of students are planning to pay back their debts as soon as they graduate, 3.9% believe they will never pay them off.

Almost a quarter (23.3%) believe it will take up to 20 years to repay what they owe, while almost two fifths (38.4%) predict it could take them up to 10 years.

But the survey reveals many students are taking steps to keep down their debts.

Almost two fifths (38.9%) of those questioned said they planned to get a job while at university, and 25.2% said they might do.

Endsleigh Financial Adviser, James Crocker, said: “The results of the survey point to the increasing financial strain that today’s student is under. In the short term students need to manage their finances as carefully as possible by creating a budget and sticking to it so as not to get into even more debt. Further down the line though, it’s clear that university students do, on average, end up earning more than those that are educated to A-level or equivalent.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .