Once you add the cost of living to this you have a recipe for a debt management nightmare. There are concerns that this high level of post-graduation …
Once you add the cost of living to this you have a recipe for a debt management nightmare. There are concerns that this high level of post-graduation debt is actually putting many off attending university altogether.
However, the benefits of a degree in terms of future earning potential can often outweigh the debt incurred, so people should not write off education without doing a bit of investigating.
Being financially switched on will undoubtedly help freshers wanting to make the most of their student years without racking up huge credit card debts and incurring substantial overdraft fees.
Dr Tessa Stone, chief executive at Brightside, said students often head to university with little or no financial preparation – and this can lead to debts.
She said: "No one asks them to build a budget and say how much do you think you will pay for accommodation and what does a gas bill cost? Or how much do you think you should allow for food each week?"
Dr Stone claimed that one of the best things the government could do to prepare young people for the financial independence that university brings is to encourage the teaching of finance in schools.
"I would love to see more about financial management in the school curriculum because not every parent has experience of student loans," she concluded.
Students can also have a major impact on their parents' financial security. This is particularly true in the tough jobs climate, which sees many students leave university with no job to go to.
Judy Reith, a parenting coach and author at Parentingpeople.co.uk, recently claimed that families are also hit with the burden of helping their offspring set up a home of their own – alongside paying off student debts.
Posted by Joe White