Student debt ‘will take more than a decade to pay back’

The debts students incur when they graduate from university will take more than a decade to pay back, it has been revealed.

According to uSwitch, a typical degree-holder will leave their alma mater with £21,198 in borrowed money they will have to balance when they leave.

However, it is unlikely the majority of these young people will have enough budgeting experience when they graduate to achieve financial stability with these debts, with almost six in ten putting off saving for the future as a result of the money they owe.

The cost of attending university is only increasing in expense, as the government earlier this year revealed it is raising the cap on tuition fees from £3,290 to £9,000 a year.

This could result in many young people having serious financial difficulties when they receive their diplomas because even now, a fifth of graduates are considering bankruptcy due to their mountainous arrears.

In addition, the students who graduated five years ago are struggling to balance overdrafts of an average £1,200.

Experts have claimed that more young people need to wise up and universities should provide this sort of support for their students.

Personal finance expert at uSwitch Michael Ossei said: "Higher fees and lack of job prospects may be out of your control, but if university is right for you it's more important than ever that you are as financially prepared as possible. Getting a student loan may be the only way to fund university, but it's vital that you get clued up on the system."

This follows a study from Co-operative Financial Services released last month, which revealed money management is a key concern for 80 per cent of consumers, with credit card debts among the main financial worries harboured by the majority of people.

By Amy White