Debt worries for graduates

Published on Wednesday 29 June 2011 20:35

STUDENT debts have forced almost 40 per cent of graduates to put their lives on hold, new research has claimed.

Not only are almost six in ten graduates unable to save, but other major life decisions, such as getting married or starting a family, are being put off because of student debt, according to research carried out by uSwitch.com.

Graduates now face an average debt of 21,198 after they finish university, the website claimed, and it takes them an average of 11 years to pay back.

And student loans are not the only form of debt they face.

According to uSwitch, the average graduate still has more than 1,200 of an overdraft as a hangover from their student days - which many graduates who left higher education between three and five years ago are still struggling to clear.

Furthermore, almost a quarter of graduates have no idea how much they owe to their bank.

"The fact that graduates have to put their life on hold because they are knee deep in student debt is a sorry state of affairs," said Michael Ossei, personal finance expert at uSwitch.

"And, as fees go up, students risk running up even bigger debts.

"But without a degree, getting a job in today's stagnant market may be even harder.

"Going to university used to be the norm, but it is now becoming a catch-22."

Mr Ossei added: "It is also worrying that students are going to university blind to the financial implications."