Banks entice students and then “attack them quite viciously” with debt, according to the National Union of Students (NUS).
A spokesperson for the organisation said that students need better debt advice and the access to financial information as they are at a pressured time in their lives.
“It would seem sensible that they were given more financial advice, especially when there is so much open to them: credit cards, loans, etcetera,” the spokesperson said.
“Given all of those things are open to them, we’d hope they’d be given better advice financially.”
However, the spokesperson also said that the market is an “absolute prize” for banks and suggested that after luring students in, they are attacked with the “commercial rate of debt” – something that could result in them having debt management problems.
Finally, she added that when it comes to financial education, “nothing substitutes them [students] being sat down” and talked to about handling their finances, suggesting this could help them clear debt they accrue.
Recent opposition from the NUS to HSBC plans to charge interest on graduate account overdrafts led to a withdrawal of the policy by the bank.