University graduates in the UK are “being squeezed form all sides” as the interest charges on their debts increase, it has been claimed.
According to the Conservative Party, the rate of interest a typical British graduate is obliged to pay in relation to his or her student loan has doubled during the past 12 months.
As a result, thousands of young people are entering the workplace with a considerable debt management burden that will add to the financial difficulties they already face.
The Conservatives have laid the blame for the money problems of British graduates squarely at the feet of the current government and what they claim to be “economic incompetence”.
“New graduates are finding it harder than ever to cope financially,” said the party’s university and skills spokesperson David Willetts.
“It will take longer than ever for new graduates to pay off their debts,” he added.
A recent report from the Brewin Dolphin company suggested that debt management problems are preventing thousands of young people in the UK saving for their own retirement.