Parents underestimate children’s debt

According to the Association of Investment Trust Companies (AITC), parents are underestimating graduation debt levels by nearly half the true amount of £13,500.

“This year parents and future students have underestimated by a greater margin the amount of student debt they will face on graduation despite the publicity surrounding the introduction of top-up fees from September,” said Annabel Brodie-Smith, communications director at the AITC.

“Many young people go to university to enjoy some of the best years of their life but on graduation they find themselves struggling to repay their debt.”

Her warnings come as new students this year prepare to graduate with even more debt than their predecessors thanks to top-up fees which are repaid after graduation.

Ms Brodie-Smith said that it was vital for parents to plan for the future and that they now need to start saving at an earlier age than before to pay for their children’s education.

Recommending investment trusts and other funds, Ms Brodie-Smith said that by investing for the future, parents can help students graduate without a massive debt burden.