July 21, 2008
Students face £13k loan debt
The Association of Investment Companies ( AIC ) has reported that students are leaving university with an average loan debt of around £13,000. The situation is expected to deteriorate with the AIC predicting that ,next year, extra top-fees will see graduates leave university with a £20,000 deficit.
The AIC also stated that over 50% of students have to rely on loans to ensure thatthey complete their studies. Over 10% suggested that they have no other option than to take on part-time work in order to ensure that they received a steady source of income and avoid further debt.
The credit crunch is hitting the British way of life and an increasing number of parents are finding that they are unable to cope with the financial demands of university fees. It is recommended that parents take the time to plan for the financial expenditure that is associated with student life.
There are no signs that there will be a reduction in the cost of university education despite the current effects of the economic downturn on every day living costs.