Graduate debt hurts earning into 30s

Peter Brown of educational consultants Gabbitas, and author of the report, found that graduates are an average age of 33 before their lifetime net earnings after the costs of education overtake someone who began working straight after school at the age of 18.

He found that those who left education after taking A-levels have average lifetime earnings of £250,000 by 33. It is only at this stage that they are overtaken by graduates, who have earned on average £20,000 more by this stage.

Over the last five years the government’s annual tuition fees have added to the cost of student life, with some reports stating that the average student debt has increased by 74 per cent.

Furthermore, it is said that some 40 per cent of graduates have debts of more than £10,000.

Mr Brown concluded by saying that his research supported the proposal of two-year degrees, which the government revealed earlier this month.