£23k Debt Facing New Students
A recent survey has suggested that students who are new to university courses this autumn could graduate with debts of up-to £23,000.
One of the main problems facing students with this level of debt could be if they don’t immediately find work and may find themselves being chased by a debt collection agency who have been utilised by companies eager to get back what they are owed. Debt recovery processes for students are often resolved quickly as there is a fair level of communication between the two parties.
After surveying 2,024 students, the Push Student Debt Survey suggested that at various stages of a degree course debt averaged at more than £5,000 a year, and was increasing! The National Union of Students, who had conducted research of their own, suggested hat this could be because some courses have higher “hidden costs” then others, with greater requirements for certain equipment or books. The survey also suggested that there was a wide gap in student debt between different regions and institutions.
The survey showed that students in England have the highest level of debt with an average of £5,271 for each year of study and that London students incurred the highest level of debt with some students owing over £30,000 by the time their degree ends! The level of debt has increased by 10% over the last 12 months, with a 30% increase in Northern Ireland, now at an average of £4,324 a year. Wales also an increase in debt with an average of £4,021.
Scotland, however, defied the trend and actually saw a decrease in the level of debt with an average of £2,194 owed. This could be because Students in Scotland who are Scottish or from another EU country outside the UK have their tuition fees paid by the government, and students no longer have to pay back a graduate endowment after finishing their course. It is expected a review is to take place for the rest of the UK and the government said it was spending over £5bn a year on student support.