£5m debt for graduates

The average new student is set to graduate owing £15,000, over double the current average debt of £6,161, Callcredit has said.

“Life is financially harder for students now than it has ever been and the decisions people make about their borrowing while they are studying will impact on their finances for years to come,” commented Callcredit industry relations director Mel Mitchley.

Part of the reason of the hike in debt levels is that tuition fees have near-trebled this year and Ms Mitchley added that this makes it even more important that students take out debt advice.

Advisors already are urging parents to start saving early to help their children for graduation when student loans have to be repaid.

Without savings, Ms Mitchley warned that some graduates are declaring bankruptcy, but she urged them to reconsider as this is not an “easy option”.