Students face £25,000 debt burden on graduation

The Student Debt Survey was published today and does not make good reading for those looking at further education in the future. The expected debt which a student will be saddled with on leaving further education has increased by 5.4% since 2009 and now stands at a record £25,000!

The report suggests that while the Student Loan Company is proving very useful to students, many are finding it difficult to live on the finance provided and are often forced to take out "top-up loans" elsewhere. The economic outlook for the UK is also adding to a very difficult situation as traditional part-time jobs for students are now few and far between causing further issues on the financial front. There is no doubt that a potential debt of £25,000 upon graduation will make many people think again about further education, to the detriment of the UK economy in the longer term.

The proposed graduation tax has received a very mixed welcome in the UK because ultimately it is deferring a potentially larger debt until later in working life with many people possibly paying back significantly more than the actual cost of their education. It will be difficult to find a balance in the longer term but the UK government possibly needs to go back to drawing board?