Debt: Uni Students Face £53,400 More Loans



Tuition hikes mean increased importance on savings

Tuition hikes mean increased importance on savings

Students currently studying at UK universities are said to have an average debt of around £60,000 a year to cover the cost of tuition, fees, books and accommodation.

Many are unable to find jobs that allow them to study, meaning that grocery shopping is also done on borrowed money.

The increase in tuition to £9,000 next year will mean a shocking increase in loans: students are predicted to need a further £53,400 for their full year course.

Push survey

According to Push, which is the student guide responsible for commissioning the debt survey, English students will graduate with £60,000 in debt.

The survey involved 2,808 students at 115 universities in the UK, and asked how much money was borrowed from the bank, relatives, and student loan company.

Push also asked about accommodation, living costs, and tuition fees.

Around a quarter of the average £60,000 debt was found to be owed to parents and family, while 7% are owed to banks and credit cards.

This is consistent with the latest figures that show debt in the UK rising by 11%.

Enrolment dropping

Many are worried that the huge tuition fee hike, which can for some only be met with loans, are going to deter young and talented people from ever pursuing higher education.

With such a huge debt on their shoulders and a financial climate that does not guarantee a job after graduation, forgoing education is understandable. But it does not need to happen.

Experts are currently urging parents to consider tax-efficient children’s savings to offset the huge costs that future generations are going to be expected to pay for university. Parents who can afford to set aside a few pounds each month are encouraged to see how much their small savings will grow over the long-term.

In addition, tax-free children’s savings accounts like the Young Saver Plan allow parent to legally shield their money from the tax man, and make every pound put in worth more than if it were kept as income and spent.

 

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