First-ever drop in student debt
Wednesday, 16 August 2006 12:00
Students borrowed less money last year for the first time since records began, new figures show.
Last year average student borrowing fell nine per cent to £3,103 for each year of study, the UK's largest survey of student debt reveals.
The data, published today in the latest edition of The Push Guide to Student Money, shows that while average debt dropped some students are still more than £25,000 in the red, and certain universities have average borrowing of more than £5,000 per year.
"This year's debt fall probably indicates some belt-tightening on the part of today's students," said Johnny Rich, series editor of The Push Guides, an independent resource for prospective students.
However, while students are borrowing less, they are forced to pay more while at university.
The Push booze index shows that the average price of a student drink has now reached the £2 barrier, up 5 pence on last year.
Additionally, average rents have increased seven per cent from £64.69 per week to £69.08.
But the most high-profile change has come with the advent of top-up fees.
These let universities charge up to £3,000 a year more to students for attending university.
Push predicts that this change will increase average debt on graduation from £11,000 now to £20,000 by the time this year's intake leaves.
To compensate for the rising cost of a degree, increasing numbers of students are taking up part-time jobs, figures from NatWest revealed yesterday.
"Even those who won't face 'top-up' fees are anxious about their future prospects," explained The Push Guide's Mr Rich.
"The fact remains though that higher education is still an excellent investment ¬- not to mention a great way of spending three years."
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