MoneyExpert: Students Plan For £15k Debt

Students about to enter their first year of university expect to pay £33,512 for a three year degree course, NatWest figures have shown, with £14,779 of that borrowed.

The added costs – with a university education expected to cost 17 per cent more in 2006 than the year before – has not deterred many prospective students, however.

“New students are clearly much more clued up about the financial realities of university than in previous years,” said Mark Worthington of NatWest.

“Students are taking it in their stride and cutting back on their spending, meaning they only expect to graduate with eight per cent more debt than those not paying the increased tuition fees.”

Almost nine out of ten students (87 per cent) also plan to take a part time job to help them manage the costs of university.

Students were also shown to be increasingly hard-headed about the potential long-term returns on education, with 53 per cent saying that they are training for a specific job.

The low rate of interest available on student loans, far lower than the best rate commercial deals available, also mean that the costs are kept low over the long term.

This article: © Moneyexpert Ltd.

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