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Aug 4, 2006
A new study from
the Association of Investment Trust Companies (AITC) has reported that future
students (and their parents) may not be ready for the levels of debt they are
likely to incur after graduation.
The AITC’s annual
survey into attitudes towards university debt reveals that, despite the
introduction of increased top-up fees this year (up to £3,000), students
estimate their average level of debt on graduation will be just £6,199, or £1,000
less than the £7,208 they predicted when asked the same question last year. The
research shows that parents fared a little better, expecting their children to
graduate with £7,080 in debt.
According to AITC,
students could end up in a shortfall as average debts on graduation are
currently estimated at £13,500, with tuition fees of £3,000 a year being
introduced in 2006. A mere one in five students (22%) expects their parents to
finance their college degree, while one in three parents (33%) have resigned
themselves to this too.
AITC also found
that some parents are prepared to make significant sacrifices in order to help
put their offspring through university, with one in five (20%) willing to
forego their annual holiday, and a further 18% would stall new car purchases.
However, some 13% of parents wouldn’t sacrifice anything, suggesting their
children will have to go it alone. Just under one in three students (30%) know
they will have to take out a loan, and just over one in five (22%) will take on
some part-time work to fund their studies.
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