Parents urged to save now for student debt

Children’s Mutual states that with final bills for studying to qualify for certain professions reaching £70,000, saving needs to start early to offset this debt.

“By saving regularly over the long term, parents and other family members could help provide a child with a financial springboard into a chosen career and the chance to focus on job prospects rather than worrying about debt,” said David White, chief executive of the fund management firm.

The amount of debt that students run up includes tuition fees, accommodation, travel, clothing, books and other essentials needed to survive over the course of a degree.

However, without a debt management plan, many graduates are currently struggling to repay, some even going into bankruptcy.

Mr White urged monthly savings of £100 and said that by asking around the “wider family” to contribute, it could make a “real difference” when the first university bills come in.

Although current pensioners may be more comfortable with credit than their predecessors, debt advice can still be useful to people no matter what their age.