In the last few hours thousands of school leavers in the UK have been receiving their A-Level results with the hope of starting the courses they applied for at their first-choice universities next month. Along with this excitement is the prospect that these same students may be graduating in three or four years’ time with almost £25,000 of debt.
This amount marks a steadily worsening student-debt situation – those who began ‘Uni’ last year face a burden of £23,200 on graduation. ‘We are at a crunch point for student debt. Many talented potential students may shy away’ said Johnny Rich, editor of University Guide which carried out a survey of 2,000 students recently.
In addition to the fees and essential living allowances, many students will also owe money to their banks in overdrafts — which may be in the region of £2,000. Some will also have credit cards and even the expensive but easy-to-be-acquired store cards so as to enjoy unniversity life better.
Students need to be informed that money borrowed must be repaid and starting their careers with such a large debt hanging around their necks is not the way to live. If parents have been financially ‘savvy’, education fund should have been set aside before now. So since ther is little fund from parents, universities demanding more funds and the government giving less, the bulk of the burden is on the students.
All i’m saying is that gone are the days when students just go from lectures to leisure centres. These days they may have to juggle par-time work and lectures so as to, at least, minimise the amount they will borrow during their degree studies or take a year out to work and build up the education funds.
Do you know of other ways that students can avoid or minimum this impending student-debt? Please comment below.
Niyi Adeoshun
Money Management Coach
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