Saturday, August 13, 2011

Student debt £60,000

Student debt £60,000
Student debt £60,000. As higher tuition fees come into force in 2012, students starting university in England next year can expect to finish their degree with debts of almost £60,000 according to a new survey from independent student guide Push.Average debts
The survey found that current students are racking up an average debt of £5,681 a year, and the average overall in England is £5,876, in Wales £6,231, in Northern Ireland £4,319 and Scotland £2,025.
Those who started studying in 2008 will have graduated with £22,000 of debt, and that figure increases to £24,100 for those who started courses last year and will shoot up to £26,100 for those enrolling this autumn according to the the poll.
But freshers beginning their degrees next year face the steepest increase in debt, to an average of £53,400. Fees in England are estimated to average £8,630 next year, meaning students at English universities will graduate with debts of £59,100.

Liam Burns, the president of the National Union of Students, said ministers seemed to "think it is OK to hang an amount of debt equivalent to a small mortgage over someone's head while they study.
"Leaving young people reliant on commercial credit just to stay in education is scandalous. The case for full reversal of the government's fee regime remains. Ministers must stop student support going to insubstantial fee waivers and instead invest in putting money back in the poorest students' pockets."
The survey found that a quarter of students' debts are owed to sources other than the Student Loans Company - 13 percent borrowed from their parents and family, while 7 percent borrowed from banks or on credit cards.
For students in England yearly average debt has increased by 42 percent 2004 and 2011. Students at University College London owe most each year – £14,788 – while those at the University of Strathclyde owe least – £726.
The editor of Push, Johnny Rich, said the government had failed to explain how students should manage debts of more than £50,000. "For students this year and in the future it has never been more important to understand the differences between universities," he said. "It's not just the debts that vary widely, – the whole experience students have at different institutions and what they stand to gain from them vary too."
Sally Hunt, the general secretary of the University and College Union, which represents lecturers, said average student debt was "already staggeringly high and is now set to get much worse".

She added; "The government's university funding plans are a recipe for disaster and will lead to people making important life choices on the basis of their ability to pay rather than their ability to learn."

Source: walletpop